#Quant Invest Chicago: Neuropsychology of decisions under uncertainty

Denise Shull, CEO and Founder of The ReThink Group, spoke today at Quant Invest Chicago. She notes that traders sometimes forget that uncertainty is always present, that we "don’t know". The better we can grasp that concept, the better traders we will become. Context is very important; the brain works both consciously and unconsciously. Understanding and making the unconscious conscious will give us a greater database and allow us to make better decisions.

Complex decisions are best made non-deliberately. Behavioral finance excludes omniscient factor in “risk” decisions. If you believe something, there is emotion in it. Research has shown that decisions depend upon feelings; emotions signal contextual meaning. The most motivating emotion is the fear of missing out/regret.  One’s psyche is a fractal, historically-based unconscious perceptions of self, others and results. Know why you make a decision; organize and understand your emotional layers and mental fractals and you will become a better trader. Get OK with being wrong and become adaptable.

For more information, check out Quant Invest Chicago.