Emotional Trading vs. AI Logic: Who Wins in Financial Markets?
Emotional Trading vs. AI Logic: Who Wins in Financial Markets? Abstract The financial markets are battlegrounds where human psychology and artificial intelligence often clash. Traders make decisions influenced by fear, greed, and cognitive biases—collectively known as emotional trading. By contrast, AI-powered systems such as those developed by KGN AI rely on structured data analysis, machine learning algorithms, and rational execution. This article investigates the scientific underpinnings of both approaches, compares their efficacy through empirical studies, and evaluates their relevance in real-world market dynamics. We present three pivotal case studies that juxtapose emotion-driven decisions with AI logic, highlighting the rise of platforms like KGN AI in redefining trading paradigms. Our goal is to assess who truly has the edge in today’s volatile financial landscape. 1. Introduction Human emotions have historically played a central role in financial market behavior. From ...