Introduction

Financial markets are not driven solely by data, models, or rational analysis. Human emotions, cognitive biases, and behavioural patterns play a decisive role in shaping market movements, asset pricing, and investment outcomes. Traditional finance theories assume rational behaviour and efficient markets, yet repeated market crises, bubbles, and anomalies demonstrate the limits of these assumptions. Behavioural finance provides a more realistic framework by explaining how psychological influences affect both individual and collective financial decisions. This Behavioural Finance training course explores how sentiment, perception, and behavioural bias shape financial markets and corporate investment outcomes.

The course provides a structured understanding of the psychological foundations of financial behaviour, examining how fear, overconfidence, loss aversion, and herd behaviour influence market dynamics. Participants gain insight into behavioural investment strategies, market anomalies, and recent developments that affect volatility and risk. By understanding these behavioural drivers, professionals can improve decision-making, reduce bias, and strengthen investment judgement in uncertain and complex market environments.

Key Learning Outcomes

At the end of this training course, participants will be able to:

 

Training Methodology

This training course adopts a highly interactive, application-focused learning approach combining guided instruction, empirical examples, and practical analysis. Participants examine behavioural patterns, market scenarios, and investment cases to strengthen analytical judgement and apply behavioural finance principles in real-world financial decision-making.

Behavioural Finance

Who Should Attend?

This training course is ideal for professionals seeking to…

  • Investment and portfolio management professionals
  • Financial analysts and strategists
  • Risk management and treasury professionals
  • Corporate finance decision-makers
  • Professionals involved in market analysis and forecasting
  • Leaders seeking deeper insight into market behaviour

Course Outline

Day 1

The Rise and Fall of Neoclassical Finance & The Rise and Rise of Behavioural Finance

  • Introduction to Behavioural Finance
  • Pillars of Conventional Finance and Behavioural Finance
  • The Failure of Neoclassical Finance
  • Efficient Market Hypothesis:
    • EMH as the Cause of the Global Financial Crisis
    • Bubbles and Crashes in the Stock and FX Market
    • Market Anomalies
  • Why Academia & Authorities Embrace the EMH?
  • Discarding Rationality: sources and Examples of Irrationality 
  • Modern Portfolio Theory & Behavioural Portfolio Theory 
Day 2

The Financial Consequences of Behavioural Biases

  • Loss Aversion Bias
  • Overconfidence Bias
  • Representativeness Bias
  • Anchoring Bias
  • Self-serving Bias
  • Disposition Effect
  • Managerial Hubris
  • Behavioural Biases and Corporate Financial Decisions
Day 3

Behavioural Investment Strategies I

  • Noise Trading
  • Technical Analysis
  • Momentum Trading
  • Contrarian Investment Strategies
  • High Frequency Trading and Multilateral Trading Platforms
  • Energy Trading
  • Commodity Trading
  • Terrorism Risk
Day 4

Behavioural Investment Strategies II

  • Fund Managers’ Behaviour
  • The Green Effect & Sustainable Finance
  • Fintech & Cryptocurrency
  • Black Friday Effect
  • Derivative Trading
    • Forwards
    • Futures
    • Options
    • Swaps
  • Financial Volatility from Brexit and COVID-19
Day 5

Recent Developments in Behavioural Finance

  • Ecology and Finance
  • Neuroscience
  • Emotional Finance
  • Quantitative Behavioural Finance
  • Narcissism, Political Tenure, Financial Indicators, and the Effectiveness
  • Trumpism Economics
  • Algorithmic and High Frequency Trading

International Standards & Professional Alignment

Our training courses are aligned with internationally recognised professional standards and frameworks across leadership, strategy, finance, governance, risk, compliance, and audit. By integrating globally trusted models, we ensure learners develop practical, relevant, and industry-recognised capabilities.

Our trainings draw on leading international standards and professional frameworks, including ISO, ISACA, COSO, OECD, IIA, FATF, Basel, IFRS/ISSB, GRI, NIST, CPD, ILM and the OECD AI Principles. This alignment ensures consistency with global best practices across financial management, risk oversight, digital governance, sustainability, and strategic decision-making..

Designed in alignment with globally recognised professional bodies, our courses support continuous professional development, strengthen organisational capability, and provide clear pathways toward professional certifications valued worldwide.

Ready to Take the Next Step?

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FAQs

Behavioural finance explains how psychological factors influence financial decisions and market outcomes, addressing limitations of traditional finance models that assume fully rational behaviour.  

The course helps participants recognise behavioural biases and emotional influences, enabling more disciplined, objective, and risk-aware investment decision-making.  

Yes, the training course examines market anomalies, behavioural investment strategies, and real-world market dynamics influenced by sentiment and cognitive bias.  

The course is relevant for corporate decision-makers, risk professionals, and leaders whose decisions are influenced by market behaviour and financial uncertainty.  

Participants gain improved judgement, enhanced risk awareness, and the ability to mitigate behavioural bias when evaluating markets, investments, and financial strategies.  

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