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Brain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de Janeiro - 2014

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Page 1: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Brain activity: winners vs losers

J. Vieito, F. T. Rocha, A. F. Rocha

and R. Pownall

Financial Education and Behavior Investor Conference, Rio de Janeiro - 2014

Page 2: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Financial results

Page 3: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Classifying

Winners are those having FB>Market in

more than 60% of the decisions

Page 4: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Regression mappings: volatility

Page 5: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Common component: calculus

High

Right hemisphere

Low

Left hemisphere

Page 6: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Winners use left and right areas for

value, benefit and risk analysis

Page 7: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Losers use left areas for

handling numeric value differences.

Page 8: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Are winners using emotion?

winners loosers

Page 9: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Brain and Emotion

Page 10: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Emotion and Decision Making

Page 11: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Emotion and Decision Making

INSS PGBLxVGBL PRIVATE

FUNDS

BANKS STOCKS

LIFELONG PRACTICALITY PRACTICALITY PRACTICALITY RENTABILITY

65, 70, 125??? PENALTIES BANKRUPTCY OVERHEAD LOSS

Page 12: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Cost, benefit and risks

Page 13: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Cost, benefit and risks

Page 14: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Cost, benefit and risks

Page 15: Brain activity: winners vs loosersBrain activity: winners vs losers J. Vieito, F. T. Rocha, A. F. Rocha and R. Pownall Financial Education and Behavior Investor Conference, Rio de

Brain and Decision Making

Financial Education and Behavior Investor Conference, Rio de Janeiro - 2014