snap vest product overview v2

SnapVest makes financial investments easy, casual & social by allowing users to invest on stock direction, directly from their mobile phone.

This is a product overview of SnapVest.

We shaped our vision & product based on human psychology; we’ve taken into consideration:

Overview

‣Behavioral Finance.‣Techniques frequently used in casinos and casino

games.‣User testing we’ve conducted.

Mental Accounting is when people separate their money into separate accounts based on a variety of subjective criteria, like the source of the money or intent for each account.

Mental Accounting

What is

Mental Accounting is when people separate their money into separate accounts based on a variety of subjective criteria, like the source of the money or intent for each account.

You have subjected yourself to a weekly lunch budget and are going to purchase a $6 sandwich for lunch. As you are waiting in line, one of the following things occurs: 1) You find that you have a hole in your pocket and have lost $6; or 2) You buy the sandwich, but as you plan to take a bite, you stumble and your delicious sandwich ends up on the floor. In either case would you buy another sandwich?Logically speaking, your answer in both scenarios should be the same; however, because of the mental accounting bias, most people in the first scenario wouldn't consider the lost money to be part of their lunch budget because the money had not yet been spent. Consequently, they'd be more likely to buy another sandwich.

research

Mental Accounting

What is

Some investors divide their investments between a safe and speculative in order to prevent the negative returns that speculative investments may have from affecting the entire portfolio. The problem with such a practice is that the net wealth will be no different than if the investor had held one larger portfolio.

Mental Accounting

investors

Some investors divide their investments between a safe and speculative in order to prevent the negative returns that speculative investments may have from affecting the entire portfolio. The problem with such a practice is that the net wealth will be no different than if the investor had held one larger portfolio.

SnapVest is built on Mental Accounting Bias. We’ll communicate with our investors that we’re their place to experiment on high risk/yield opportunities. For that reason our delivery method is mobile and product is simple and easy to use; we want to allow the low spectrum of investors to invest casually, even on the go.

Mental Accounting

investors

Overreaction

Oftentimes, participants in the stock market predictably overreact to new information, creating a larger-than-appropriate effect on a security's price.

What is

Overreaction

Oftentimes, participants in the stock market predictably overreact to new information, creating a larger-than-appropriate effect on a security's price.

In the study "Does the Market Overreact?" researches examined returns on the NYSE for a three-year period. They separated the best 35 performing stocks into a "winners portfolio" and the worst 35 into a "losers portfolio". Researches then tracked each portfolio's performance against a representative market index for 3 years. Surprisingly, it was found that the losers portfolio consistently beat the market index, while the winners portfolio consistently underperformed. The cumulative difference was almost 25% during the 3-year time span.

researchWhat is

Overreaction

Oftentimes, participants in the stock market predictably overreact to new information, creating a larger-than-appropriate effect on a security's price.

In the study "Does the Market Overreact?" researches examined returns on the NYSE for a three-year period. They separated the best 35 performing stocks into a "winners portfolio" and the worst 35 into a "losers portfolio". Researches then tracked each portfolio's performance against a representative market index for 3 years. Surprisingly, it was found that the losers portfolio consistently beat the market index, while the winners portfolio consistently underperformed. The cumulative difference was almost 25% during the 3-year time span.

researchWhat isWe leverage Overreaction by choosing investment opportunities the market is most likely to overreact to. By doing so, we could create high level of engagement amongst over reactors and generate high returns from the overreaction effect.

Gambling games are designed in such a way that the gamblers feel as if they are in control and that failure to win is accredited to “near misses“.  Personal choice is an additional factor contributing to the illusion of control.

What is

Feeling in Control

Gambling games are designed in such a way that the gamblers feel as if they are in control and that failure to win is accredited to “near misses“.  Personal choice is an additional factor contributing to the illusion of control.

Lotteries allow players to pick their own numbers, slot machines offer bonus screens where the player will need to pick X of Y in order to determine the amount of money or spins they win. 

researchWhat is

Feeling in Control

Gambling games are designed in such a way that the gamblers feel as if they are in control and that failure to win is accredited to “near misses“.  Personal choice is an additional factor contributing to the illusion of control.

Lotteries allow players to pick their own numbers, slot machines offer bonus screens where the player will need to pick X of Y in order to determine the amount of money or spins they win. 

researchWhat is

SnapVest let users feel in control by letting them invest on stock direction. As oppose to hedge funds or other financial providers– in SnapVest Investors are empowered to make investment decisions.

Feeling in Control

This is SnapVest’s main page.

This is SnapVest’s main page.

This is the company in question and recent happenings.

Most casino games are leveraging the fact that the brain is hardwired to like short-term gratification (leading to quick and easy decisions).

Most casino games are leveraging the fact that the brain is hardwired to like short-term gratification (leading to quick and easy decisions).

To invest, the user needs to simply decide whether the stock in question will go up or down.

Once deciding on stock direction, another part of the screen will appear from beneath. Then, the investor could decide on an investment amount and approve the trade.

And that’s all it takes.

This is a countdown; at the end of the time frame, the investment opportunity will be closed and investors couldn’t invest anymore (that’s when we execute the trades). The countdown is counting backwards to create a sense of urgency to invest.

What is

Herd Behavior

Herd behavior is the tendency of individuals to mimic the actions (rational or irrational) of a larger group.There are a couple of explanations for herd behavior. The first is the social pressure of conformity.  The second reason is the common rationale that it's unlikely that such a large group could be wrong. After all, even if you are convinced that a particular idea or course of action is irrational or incorrect, you might still follow the herd, believing they know something that you don't. This is especially prevalent in situations in which an individual has very little experience.

To trigger the herd behavior bias, we put other investors’ behavior front and center.

To trigger the herd behavior bias, we put other investors’ behavior front and center.

Data we present:•Distribution of other investors.•Average investment amount per side (up/down) as an indication for confidence.•Accuracy of past investment as an indication of luck & knowledge.

Each trade opportunity has three slides:•Opportunity.•Comments.•Stock data.

Confidence implies realistically trusting in one's abilities, while overconfidence implies an overly optimistic assessment of one's knowledge or control over a situation.

What is

Overconfidence

Confidence implies realistically trusting in one's abilities, while overconfidence implies an overly optimistic assessment of one's knowledge or control over a situation.

researchWhat is

Overconfidence

A 2006 study entitled "Behaving Badly” found that 74% of the professional fund managers surveyed believed that they had delivered above-average performance. Of the remaining 26% surveyed, the majority viewed themselves as average. Incredibly, almost 100% of the survey group believed that their job performance was average or better. In terms of investing, overconfidence can be detrimental to your stock-picking ability. Overconfident investors generally conduct more trades than their less-confident counterparts, because they tend to believe they are better than others at choosing the best stocks and best times to enter/exit a position. Unfortunately, overconfident investors, on average, receive significantly lower yields than the market.

In the gambler's fallacy, an individual erroneously believes that the onset of a certain random event is less likely to happen following an event or a series of events. This line of thinking is incorrect because past events do not change the probability that certain events will occur in the future.

What is

Gambler’s Fallacy

In the gambler's fallacy, an individual erroneously believes that the onset of a certain random event is less likely to happen following an event or a series of events. This line of thinking is incorrect because past events do not change the probability that certain events will occur in the future.

What is

Gambler’s Fallacy

investorsConsider a series of 20 coin flips that have all landed with the "heads" side up. Under the gambler's fallacy, a person might predict that the next coin flip is more likely to land with the "tails" side up.Investors can easily fall prey to the gambler's fallacy. For example, some investors believe that they should liquidate a position after it has gone up in a series of subsequent trading sessions because they don't believe that the position is likely to continue going up. Conversely, other investors might hold on to a stock that has fallen in multiple sessions because they view further declines as "improbable". Just because a stock has gone up on six consecutive trading sessions does not mean that it is less likely to go up on during the next session.

This is stock data slide.

We leverage overconfidence and Gambler’s Fallacy by providing investors with current stock performance alongside with recent news about the company.

This is stock data slide.

We leverage overconfidence and Gambler’s Fallacy by providing investors with current stock performance alongside with recent news about the company.

The more investors will know, the more overconfident they will feel, even though past performance is not an indication for the future.

This is comments slide.

To leverage the Herd Behavior Bias a bit further, we allow investors to comment and talk with one another on each trade.

This is comments slide.

People tend to selectively filter and pay more attention to information that supports their opinions, while ignoring or rationalizing the rest. 

What is

Confirmation Bias

People tend to selectively filter and pay more attention to information that supports their opinions, while ignoring or rationalizing the rest. 

An investor that hears about a hot stock from an unverified source and is intrigued by the potential returns. That investor might choose to research the stock in order to "prove" its touted potential is real. 

researchWhat is

Confirmation Bias

People tend to selectively filter and pay more attention to information that supports their opinions, while ignoring or rationalizing the rest. 

An investor that hears about a hot stock from an unverified source and is intrigued by the potential returns. That investor might choose to research the stock in order to "prove" its touted potential is real. 

researchWhat is

Each investor could find supporting data to his intuition amongst the different data points on SnapVest: from stock performance and crowd behavior to comments.

Confirmation Bias

Those who study human behavior have repeatedly found that the fear of missing an opportunity for profits is a more enduring motivator than the fear of losing one's life savings. At its fundamental level, this fear of being left out or failing when your friends, relatives and neighbors seem to be making a killing, drives the overwhelming power of the crowd.

Missing an opportunity

What is

Those who study human behavior have repeatedly found that the fear of missing an opportunity for profits is a more enduring motivator than the fear of losing one's life savings. At its fundamental level, this fear of being left out or failing when your friends, relatives and neighbors seem to be making a killing, drives the overwhelming power of the crowd.

investors

Casinos frequently and artificially play the sounds of a winning slot machine so people will think others are winning in high frequency.

Missing an opportunity

What is

This is SnapVest’s leaderboard. Here, investors can see their top performing peers, by either return or accuracy rate

This is SnapVest’s leaderboard. Here, investors can see their top performing peers, by either return or accuracy rate

This is our way to give the feeling of: “by not investing I’m practically losing money”.It’s like sitting next to a slot machine when the guy next to you is constantly winning.

This is “my money” page, in which the investor can track his performance according to several metrics.

This is “my money” page, in which the investor can track his performance according to several metrics.

Investors can also prioritize the investment opportunities in their feed. The more knowledgeable the investor is regarding the sector, the more likely he is to invest.

This is “Trades” page. Here the investor can track each of his trades and how well they performed.

This is “Trades” page. Here the investor can track each of his trades and how well they performed.

Investors can also filter the list by profits/loses and sort the results by date, return and cash earned/lost.