Theoretical Framework of Neuro-Sequential Cognitive Response in Trading Decision in Financial Market – A Quantum Cognition of “Mantra-Vigyan”
摘要
The human brain goes through a myriad of automatic and reflexive activities without an individual being cognizant of it before making a decision. Neuro-finance combines the study of finance with the behavioral aspects of psychology and neuroscience to provide a detailed explanation for the hyperbolic discounting biases identified in traders’ decision-making actions on the equity market [19]. The impetus of this paper is focused on the integrative and conceptual view of Neuro-sequential cognitive responses in making trading decisions. The aim of this research is focused on the designers of the brain responsible for making this response, “Brain response to trading decision” in equity market. The factors we consider for the trading decision are grouped into four: reflexive response, analytical response, and reactive and emotional responses. These four factors create a market trading decision in reaction to a specific situation. In this case, the trading decision is dependent variable while the four types of response serve as the independent variable reflexive response, analytical response, reactive, emotional response. This research paper offers a new view on Neuro-Sequential Cognitive Response (NSCR) as theoretical base for trading decision making in equity market. We also study Marketing of ‘Mantra-Vigyan’, an Indian system with regard to the Quantum Cognition approach of understanding the decision-making process of traders. In attempting to analyze the neuro-sequential aspects of decision making, we hope to shed some light on the multi-faceted and sequential processes that shape the psychology of trading in the stock market. We will discuss Smart-PLS, the Delphi method, and the research method DEMETAL during the proposed research.