A good knowledge of the role of emotions in economic decision influences can lead to honest or dishonest manipulation.

A good knowledge of the role of emotions in economic decision can lead to financial manipulation.

An investor can manage his emotions in financial decision can lead others by encouraging them to buy this title rather than the other. It can be argued a series of personal and external arguments to encourage the purchase of a value. Thus it causes a movement that will be successful if there is a ripple effect. Bernard Madoff was well controlled and manipulated the emotions of its customers.


Among its selling points, he gave the right to refuse customers promoting a scarcity effect. He developed a network of prestigious clients. By ripple effect, new customers wanted to be part of this prestigious clan of investors, spreading rational factors and elementary verification. The case of Earl Jones speaks for itself: it became a friend of each family. These two examples summarize some of the ways to make use manipulators come to an end.

On the other hand, be familiar with the impact of emotion in finance allows investors to better understand their behavior in order to resist adverse actions, and detect manipulative, panics and periods of euphoria. The person will probe the reasons for its decisions and verify that the process of financial decision is the result of his emotions or his reason.

Marketing is a science of incentives that captures the emotions of consumers to direct them to a buying decision.

Personally, I have learned with the observation, experience and maturity out in my decisions isolate those from an emotional impulse and rational.

Nothing better than to rest expectations of a decision to let stand the excitement and wait for the sound to be strong in the decision-making. It’s totally indispensable in the investment world.

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