Overview

Behavioral Finance Course Overview

Behavioral finance is the study of the influence of psychology on the behavior of financial practitioners. In the course, you will learn about the wide range of decision-making biases and information processing errors that influence our financial decision-making. We’ll start the course with what behavioral finance is and its impacts on financial markets. We will then explore the most common self-deception biases, cognitive biases, and emotional biases. We will discuss their causes and potential measures you can take to manage them. We’ll finish the course by discussing loss aversion and herding bias.          

Who Should Take This Course?

This Behavioral Finance course is perfect for anyone who wants to be well-rounded in their analysis. This course is designed to equip anyone who desires to begin a career in fixed income, equity, sales and trading, or other areas of finance.

Behavioral Finance Learning Objectives

  • Understand what behavioral finance is, how it differs from modern finance, and how it impacts financial markets
  • Describe the most common self-deception biases, their causes, and potential measures you can take to prevent them
  • Understand cognitive biases and explore their root causes with real-life examples
  • List the most common emotional biases and discuss their causes with examples
  • Understand loss aversion and other biases that contribute to its effect
  • Study the herding bias and other social factors that distort decision-making

Prerequisite Skills

Recommended skills to have before taking this course.

  • Logical thinking
Behavioral Finance
5

Level 1

1h 59min

100% online and self-paced

Field of Study: Finance

NASBA CPE Credits: 3

Start Learning

What You'll Learn

Lesson
Multimedia
Exams
Files

Cognitive Biases

Overview of Cognitive Biases
2008 Global Financial Crisis Exercise
2008 Global Financial Crisis Poll
2008 Global Financial Crisis Exercise (cont.)
Hindsight Bias
Hindsight Bias Case Study
Interactive Exercise 6
Self-Attribution Bias
Self-Attribution Bias Case Study
How Can We Guard Against Self-Attribution & Hindsight Bias
International News Exercise
International News Poll
International News Exercise (cont.)
Confirmation Bias
Confirmation Bias Case Study
Confirmation Bias Exercise
Confirmation Bias Poll
Confirmation Bias Exercise (cont.)
How Can We Guard Against Confirmation Bias
Interactive Exercise 7
Finding Patterns Exercise
Clustering Illusion & How We Can Guard Against It
Guess the Likelihood of an Event
Guess the Likelihood of an Event Poll
Guess the Likelihood of an Event (cont.)
Representative Bias
Representative Bias Case Study
How Can We Guard Against Representative Bias
Interactive Exercise 8
Investment Strategy Exercise
Investment Strategy Poll
Investment Strategy Exercise (cont.)
Status-Quo Bias
Status-Quo Bias Case Study
How Can We Guard Against Status-Quo Bias
Interactive Exercise 9
Shopping Exercise
Shopping Poll
Shopping Exercise (cont.)
Anchoring Bias
Anchoring Bias Case Study #1
Interactive Exercise 10
Anchoring Bias Case Study #2
How Can We Guard Against Anchoring Bias
Choose Your Treatment Exercise Question #1
Choose Your Treatment Question #1
Choose Your Treatment Exercise Question #2
Choose Your Treatment Question #2
Choose Your Treatment Exercise Analysis
Framing Bias
Framing Bias Case Study
Now You Have a Go...
Even Word Order Can Impact Framing
How Can We Guard Against Framing Bias
Interactive Exercise 11
Midway Check-In

Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Capital Markets & Securities Analyst (CMSA®) Certification

  • Skills Learned Trading strategies used in the finance and capital markets
  • Career Prep Work in capital markets, whether on the buy-side or the sell-side

Financial Planning & Wealth Management Professional (FPWMP®) Certification

  • Skills Learned Financial Learning, Business Development, Investment Management, Practice Management, Relationship Management
  • Career Prep Financial Planner, Investment Advisor, Portfolio Manager

What Our Members Say

I really like this area of finance and the way Scott explains it is very insightful, thanks!

Rustom Rupand

Behavioral finance is fascinating!
This is a very interesting course. Behavioral finance is fascinating! The course does a great job in covering a wide range of decision-making biases and information processing errors.

Barbara Alvarez

My very first experience into Behavioural Finance- Loved it!
This is the first time I've learned about behavioral finance. The course made it very interesting! It was very well taught and explained. Loved it!

Mustafa Mustansir

Thanks CFI
Good financial psychology that guides you in decision- making in the finance industry and societies as a whole. Has really shaped my cognitive behaviors when facing financial decisions. Thanks, CFI.

Teka Derick Tikum

Frequently Asked Questions

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If you haven’t found your answer from our FAQ, please send us a message.
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