Stoxkart launches behavioural tool for stock traders to assess cognitive biases

Stoxkart launches behavioural tool for stock traders to assess cognitive biases

In a bid to help layman individual understand his trading traits, Stoxmind.ai – India’s first behavioural assessment tool powered by deep discount broker Stoxkart – will offer psychometric tests to fairly evaluate one’s myths and misconceptions.

The free tool, not restricted to Stoxkart users but to everyone in the trading universe, has been created after thorough research including thousands of traders and professional psychologists offering five assessments based on the cognitive biases that can often influence the decision making of even experience traders and investors, said Stoxkart in a statement.

These include:
(a) Personal traits assessment for trading time frame
(b) Personal traits assessment for algo vs discretionary trading

(c) Identifying myths and misconceptions related to the markets
(d) Identifying cognitive biases which oppose rational decision making
(e) Reasoning, Logical and Mathematical skills assessment.

Explaining the rationale for the launch of this tool, Pranay Agarwal, CEO, Stoxkart that powers Stoxmind.ai, said, “We have observed that emotions very often deprive traders and investors to book profit or build a portfolio, as they get stuck in a cycle of trial and error in the market. This usually happens because people keep trying methods which do not gel with their personality traits and brings unnecessary hardship. That’s why we created this free platform for objective evaluation of personality traits.”

Psychometric tests are common when it comes to companies hiring employees, but unfortunately there have been no such tests available to investors and traders participating in the stock market with their hard earned money that propelled us to launch this tool, Agarwal said.

The psychometric test also assumes significance since India’s National Stock Exchange remained the world’s largest derivative exchange for the fifth consecutive year by the number of contracts traded, as per the last available official data.

Moreover, according to SEBI’s well documented study, 7 out of 10 individual intra-day traders in equity cash segment have incurred losses in a particular year and 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.

"In human interest, Stoxmind.ai coveted objective is to help people evaluate their discretionary traits and quantitative traits and overcome the cognitive biases that lead to suboptimal outcomes and reduced profitability," said Stoxkart.