Stock markets and emotions

It was reported that the UK stock markets climbed to new highs on the final day of trading for 2017 and that the US stock markets have also seen new heights over the last year encouraged by Donald Trump’s sweeping tax reforms.

What lies in store in 2018? The BBC reported some academics stating that the FTSE 100 had been lifted by a rise in oil prices and by the weak pound, since these companies have large operations abroad.

Economists and academics will continue to debate the rise and its reasons along with the important topic of how traders react to markets and manage their emotions.

The Open University has carried out research in this area with Professor Mark Fenton O'Creevy who is a Professor of Organisational Behaviour at the University’s Business School, identifying particular behaviours that traders should follow for success.

Please see our film recorded about ‘trading and emotions’ with the Open University and IG Index which has been one of our most popular videos.