Overview:
What if we could detect market fear before it shows up in the charts? Neurofinance is a rising field that blends neuroscience, biometrics, and trading algorithms.
Real Application:
Startups like Sentio and university labs are developing EEG-powered headsets to measure trader stress and attention in real time. Some hedge funds track cortisol levels or pupil dilation to optimize trader performance.
Benefits:
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Early detection of irrational behaviors
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Personalized trading dashboards
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Reduces impulsive, high-risk decisions
Ethical Risks:
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Privacy concerns on biological data
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Potential misuse in surveillance-heavy workplaces
Key Takeaway:
Finance is starting to look inside the mind—not just the market. Neurofinance may become Wall Street’s next performance edge.