Empirical evidences of psychological biases in Forex trading

  • Dr Boyan Ivantchev University for national and World Economy - Sofia


Current research is unique for the Bulgarian Forex traders. We will use the tools of behavioral finance for to analyze large data set of 366 276 Forex deals performed by 287 Bulgarian traders for the period of 2014-2019. We will explain the influence of loss aversion bias, endowment effect and loss attention bias on traders decision making on the Forex market. Additionally, the author will employ interdisciplinary field of neurosciences and neuroeconomics for to explain behavior and decision making of Bulgarian Forex traders. The research is a consecutive part of the author involvement in the field of behavioral finance and neuroeconomics in Bulgaria and will lead to further researches of the traders decision making and the influence of cognitive biases.


Keywords: Forex trading, Bulgaria, neuroeconomics, behavioral finance, loss aversion, endowment effect, loss attention


JEL Code:G41

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