Behavioral Finance and Investment Psychology Training Course

Module 1: Introduction to Behavioral Finance

• The Foundations of Traditional Finance vs. Behavioral Finance
• The Concept of Rationality and its Limitations
• Key Figures and Milestones in Behavioral Finance
• The Interplay of Psychology and Economics
• Practical session: A survey to identify initial personal biases in financial decision-making.

Module 2: Cognitive Biases and Heuristics

• Overconfidence and Self-Attribution Bias
• Anchoring and Adjustment
• Confirmation Bias
• Representativeness Heuristic
• Practical session: A case study where participants must identify and correct for cognitive biases in an investment memo.

Module 3: Emotional Biases in Investing

• Regret Avoidance and Disposition Effect
• Fear and Greed
• Endowment Effect
• Familiarity and Status Quo Bias
• Practical session: Analyzing a portfolio's history to identify evidence of the disposition effect.

Module 4: Prospect Theory and Loss Aversion

• The Core Concepts of Prospect Theory
• Understanding the Value Function
• Framing Effects
• The Power of Loss Aversion
• Practical session: Comparing investment decisions under different framing scenarios to demonstrate loss aversion.

Module 5: Market Anomalies and Herd Behavior

• The Efficient Market Hypothesis (EMH) Revisited
• Bubbles and Crashes: A Behavioral Perspective
• Herd Behavior and Social Proof
• The Power of Narrative and Storytelling in Markets
• Practical session: Analyzing a historical market bubble (e.g., the dot-com bubble) through a behavioral lens.

Module 6: The Psychology of Financial Decision-Making

• Mental Accounting and its Consequences
• Self-Control and Myopic Loss Aversion
• Planning Fallacy
• The Role of Goals and Financial Identity
• Practical session: Designing a mental accounting framework for a personal investment portfolio.

Module 7: Neurofinance and the Brain

• Introduction to Neurofinance
• The Brain's Reward System and Risk-Taking
• The Role of Hormones (e.g., Cortisol and Testosterone)
• The Neuroscience of Fear and Greed
• Practical session: A discussion on how understanding brain function can help manage emotional responses to market volatility.

Module 8: The Role of Financial Media

• How Media Shapes Perceptions
• The Impact of News and Market Commentary
• Information Overload and Noise Trading
• Developing a Disciplined Approach to Media Consumption
• Practical session: Critically analyzing a news article about a company to separate facts from sensationalism.

Module 9: Behavioral Portfolio Management

• Integrating Behavioral Insights into Portfolio Construction
• Understanding Client Risk Tolerance and Biases
• Creating a "Behavioral Profile" of a Client
• Strategies for Debiasing Investment Decisions
• Practical session: A role-playing exercise where a financial advisor guides a client through a biased decision.

Module 10: Applying Behavioral Finance in Practice

• Creating a Personal Investment Policy Statement
• Developing a Rules-Based Trading Strategy
• Improving Communication with Clients and Colleagues
• The Future of Behavioral Finance
• Practical session: Formulating a personal strategy to mitigate overconfidence in investing.

Requirements:

·       Participants should be reasonably proficient in English.

·       Applicants must live up to Phoenix Training Center admission criteria.

Terms and Conditions

1. Discounts: Organizations sponsoring Four Participants will have the 5th attend Free

2. What is catered for by the Course Fees: Fees cater for all requirements for the training – Learning materials, Lunches, Teas, Snacks and Certification. All participants will additionally cater for their travel and accommodation expenses, visa application, insurance, and other personal expenses.

3. Certificate Awarded: Participants are awarded Certificates of Participation at the end of the training.

4. The program content shown here is for guidance purposes only. Our continuous course improvement process may lead to changes in topics and course structure.

5. Approval of Course: Our Programs are NITA Approved. Participating organizations can therefore claim reimbursement on fees paid in accordance with NITA Rules.

Booking for Training

Simply send an email to the Training Officer on training@phoenixtrainingcenter.com and we will send you a registration form. We advise you to book early to avoid missing a seat to this training.

Or call us on +254720272325 / +254725012095 / +254724452588

Payment Options

We provide 3 payment options, choose one for your convenience, and kindly make payments at least 5 days before the Training start date to reserve your seat:

1. Groups of 5 People and Above – Cheque Payments to: Armstrong Global Training & Development Center Limited should be paid in advance, 5 days to the training.

2. Invoice: We can send a bill directly to you or your company.

3. Deposit directly into Bank Account (Account details provided upon request)

Cancellation Policy

1. Payment for all courses includes a registration fee, which is non-refundable, and equals 15% of the total sum of the course fee.

2. Participants may cancel attendance 14 days or more prior to the training commencement date.

3. No refunds will be made 14 days or less before the training commencement date. However, participants who are unable to attend may opt to attend a similar training course at a later date or send a substitute participant provided the participation criteria have been met.

Tailor Made Courses

This training course can also be customized for your institution upon request for a minimum of 5 participants. You can have it conducted at our Training Centre or at a convenient location. For further inquiries, please contact us on Tel: +254720272325 / +254725012095 / +254724452588 or Email training@phoenixtrainingcenter.com

Accommodation and Airport Transfer

Accommodation and Airport Transfer is arranged upon request and at extra cost. For reservations contact the Training Officer on Email: training@phoenixtrainingcenter.com or on Tel: +254720272325 / +254725012095 / +254724452588