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When brain says buy, you may not know why
When brain says buy, you may not know why

Billions of neurons fire in the brains of stock market traders as they decide whether to buy or sell shares in a matter of seconds. Some of these brain waves produce rational calculations about how best to make a profit, but others may not, suggests new research from the nascent field of neuroeconomics — a discipline that takes a physiological approach to understanding economic decision-making. The new study shows that activity in a part of the brain associated with pleasure and reward flares to life during trading. The researchers say this may cause traders to buy too aggressively and ultimately drive stock market bubbles to inflate and burst. Speculative bubbles have plagued...

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