From : 09:00
To : 10:30
What Makes a Good Trader? Using Experimental Markets and Cognitive Finance to Profile Successful Traders
We study the determinants of individual trader performance by conducting a comprehensive analysis of a broad range of variables that have been studied separately in different strands of the literature (financial literacy, cognitive skills, behavioral biases and the theory of mind). We utilize an experimental trading environment that allows us to control information flows into the market and measure a large set of individual characteristics. We show that behavioral biases (such as overconfidence and the failure to understand random sampling) significantly explain trader performance whereas standard cognitive and theory of mind skills only have a marginal effect. These results support the recent effort to incorporate Behavioral Finance research findings into the financial training curriculum.
Assistant Professor of Finance at Chapman University, Dr. Corgnet investigates questions related to Market Efficiency and Behavioral Finance. He is also developing a computer software for the realization of research experiments as well as for teaching in disciplines ranging from Corporate Finance to Organizational Economics. Recently, Dr. Corgnet has published in international journals including Journal of Economic Behavior and Organizations, Economic Inquiry and Journal of Economic and Management Strategy.