Mood in foreign exchange trading: Cognitive processes and performance
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摘要This paper examines the effects of mood on the behavior of traders or decision makers in financial markets. Based on a review of the psychological theories and empirical findings which relate mood to decision making and information processing, we derive hypotheses with respect to the impact of good, neutral, and bad moods on the behavior of traders. Two experiments (N = 66 and 72) were conducted on an Internet platform which simulated foreign exchange trading based on historical market data. The first experiment manipulated mood using feedback and music whereas the second one asked subjects to read mood-laden statements. It was found that traders in a good mood had an inferior trading performance (losing money) compared to those in a neutral or bad mood (making profit). This is because traders in a good mood made less accurate decisions than those in neutral or bad moods. Those in a bad mood were the most accurate in their decisions but behaved conservatively in their trading. Subjects in a good mood tended to make less accurate decisions though they spent on average at least the same time as the other subjects on information processing and decision-making. They also were over-confident taking unwarranted risks. The studies concluded with insights concerning the effects of mood on choice of trading strategies. (C) 2002 Elsevier Science (USA). All rights reserved.
著者Au K, Chan F, Wang D, Vertinsky I
期刊名稱Organizational Behavior and Human Decision Processes
詳細描述To ORKTS: www.sciencedirect.com
出版年份2003
月份7
日期1
卷號91
期次2
出版社ACADEMIC PRESS INC ELSEVIER SCIENCE
頁次322 - 338
國際標準期刊號0749-5978
電子國際標準期刊號1095-9920
語言英式英語
Web of Science 學科類別Business & Economics; Management; MANAGEMENT; Psychology; Psychology, Applied; PSYCHOLOGY, APPLIED; Psychology, Social; PSYCHOLOGY, SOCIAL

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