Are behavioral economics insights used in stock trading?

Bandwagon Effect [1] : This can be used to one's advantage. Rather than following bandwagon effect , you can oppose the bandwagon effect. read more

In regular economics, one of the underlying assumptions is that humans are rational. Behavioral economics disproves that which opens the doors for trading to work. A lot of the time, stock charts literally show the emotion building up or subsiding via the price action itself. read more

Behavioral economics emerged to account for these anomalies by integrating social, cognitive, and emotional factors in understanding economic decisions. Neuroeconomics adds another layer by using neuroscientific methods in understanding the interplay between economic behavior and neural mechanisms. read more