Citation:

Andreea-Madalina Vartei. "Unveiling a Fresh Approach to Decision-Making in Neurofinance for Sentiment-Driven Investors" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 415-421, 2023.

Abstract:

In the realm of financial decision-making, the confluence of neuroscience, economics, and psychology gives rise to a fascinating field known as neurofinance, often viewed as a subset of behavioral finance. This article delves into how our emotions intertwine with the choices we make in finance, tracing the evolution of this field across the last two decades. Neurofinance takes a deep dive into how our minds work, how we respond emotionally, and how these factors shape our financial behavior. This lens offers a unique way to predict and understand financial outcomes. This study zooms in on how managing our emotional biases can improve decision-making, highlighting how our emotions can significantly influence our investment choices. Through an in-depth exploration of academic literature from the past twenty years, we sketch the trajectory of neurofinance's growth. Shifting our focus, we explore the emotional side of financial decisions, probing how both positive and negative emotions sway our choices and impact financial results. We then delve into the challenges posed by emotional biases and the strategies used to regulate emotions in financial contexts. In conclusion, this article underscores the potential for emotions to refine financial decisions and boost investor performance, pointing towards promising future research and practical applications in this dynamic landscape.

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Keywords:

Behavioral Finance, Brain Imaging in Finance, Neuroinvestment, Neurofinance, Sentimental Trading Patterns.