Successful Investment Strategies with Behavioral Finance

While traditional finance focuses on how investors and markets should behave, behavioral finance is concerned with how investors and markets actually behave in the real world. For example, according to traditional finance, investors are expected to shape their portfolios based on risk and return preferences. However, studies in behavioral finance show that many investors shape their portfolios based on their cognitive and emotional tendencies, i.e., psychological factors. It is through the reflection of these psychological factors that it is possible to succeed in the markets with simple investment strategies in the field of behavioral finance.

In this course, four different investment strategies in behavioral finance will be examined: momentum investment strategy, contrarian investment strategy, firm size anomaly, and earnings surprise investment strategy. In this approximately two-hour course, first, a brief explanation of these four strategies will be provided. Subsequently, it will be demonstrated how investment strategies are created through the Queenstocks program and discussed their practical applications on BIST. Finally, a performance analysis of each investment strategy will be conducted. Even if you have never heard of behavioral finance before, you are welcome to our course to easily apply these investment strategies!