Behavioral finance in the CIT’s trading training course

Behavioral finance in the CIT’s trading training course

Finance comportementale, Formation trading, Trader, Quant, CIT, Comportement, Cerveau, Brain

The human threat to the market’s well being is taken seriously at the CIT, which employs specialized researchers in its Research Center. The CITRD’s regularly published reports are used firstly in the construction of programs of trading psychology modules, such as stress management and competition management. These courses represent an important part of the CIT’s training course. In effect, when CIT students to finish the program with a good experience, it can be assumed that they went through a certain amount of pressure in the process. We do admit a certain level of separation in performance between training and entry into the ‘real world’ of trading, because of natural development of coping techniques, which are presented in further detail below. Different courses in human science at the CIT founded on research are here to prepare students for possible problems. It’s a new era in market finance as detailed in our recent publications.

Behavioral Finance: a recent addition to trading researchfinance comportementale au trading program du CIT USA

Finance is marked by a history of hard hits (the crash of Wall Street in 1929, the crisis in 1973, the recent subprime crisis…). We believe today that these crises had, above all, a human origin, and psychological effects, such as cognitive and emotional behavior, played an important role as the market turned. Even if these crises could not have been avoided, the reduction of emotional reactions in trading would have certainly reduced their impact. This theory, explained by one of our researchers, that markets are perfectly efficient, is in radical opposition of those common in the 2000s.

Behavioral finance, which is very similar to behavioral economics, is the science of humans in finance, and works to limit the effects of Traders’ idiosyncrasies on the market. As well as the study

Today, backed by the Nobel Prize in Economy, behavioral finance is focusing on factors that influence humans and the market around them: the weather, vacation time, etc. Stakeholders, such as the Parisian analysis office 2Bremans, work in this field to regulate the negative effects of such deviations.

Behavioral finance works therefore to reduce deviancies in behavior and their consequences on the market. ….

Dangerous behaviors in a trading room are diverse :

  • Automatic reflexes that can lead to recklessness
  • Emotional difficulties, often in comparison with others: feelings of superiority, admiration, fear…
  • Social mimicry, for example the development of purchasing habits caused by the influence of a large number of people who act similarly
  • Submission to the influence of others


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La Russie a connu depuis début décembre la plus grande crise monétaire et économique de ce siècle. La chute du rouble brutale rappelle des souvenirs de la fin de la guerre froide.

Demandez à n’importe quel trader, qu’il soit employé par une banque, professionnel en Bourse ou amateur réalisant ses trades à domicile et il vous le dira : le métier n’est pas de tout repos.

Yahoo, mort et enterré ? Au début des années 2010, il est vrai que la situation n’était pas brillante pour la firme californienne.

Sésame, ouvre-toi ! Et après avoir tué les 40 voleurs et vengé la mort de son frère, Ali Baba vécut heureux entouré de sa famille, jouissant de la propriété de l’énorme trésor dont il était le seul à connaître l’existence.

C’est une grande première sur les marchés financiers, et elle fait du bruit : le cours moyen du baril de Brent brut sur 5 ans est désormais exprimé sur 3 chiffres.


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