Home  Journals  Finance and Credit  10(730) - 2017 March

Financial traders as a new subject of economic theory

Vol. 23, Iss. 10, MARCH 2017

Article PDF Version

Received: 25 September 2016

Received in revised form: 2 October 2016

Accepted: 13 October 2016

Available online: 15 March 2017

Subject Heading: Financial system

JEL Classification: F20, G02, G15

Pages: 565-574

https://doi.org/10.24891/fc.23.10.565

Subject The article considers financial traders as a new subject of economic theory and focuses on their special role.
Objectives The purpose of the study is to explore the motivation and specifics of traders' behavior in the market.
Methods I apply theoretical and analytical techniques to examine traders' behavior in financial markets, analyze the difference between traders and households as market transaction participants.
Results I consider fundamental tenets of behavioral economics, substantiate the need to use behavioral methodology to examine trading strategies, the motivation and rationale of actions of financial traders in the market.
Conclusions Unlike households, financial traders are not restricted in their actions in the market, and are often governed by their own emotions.

Keywords: behaviorism, household, trading position, excessive irrationality, volatility

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