Personality Traits and Investor Decisions

Investors are thought to be fair in the stock market. They know a lot about the stock market and have a lot of details about it. However, they do not produce the same performance, so investors may be classified as having a high or low risk tolerance, since the higher the risk, the higher the return. Some personality characteristics and psychological biases have been identified by previous researchers. The aim of this study is to determine if each of the big five personality traits, Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience, is correlated with a high or low financial risk tolerance.This research also looks at the psychological biases that are linked to these five personality traits. We distributed 150 questionnaires to investors trading on the Pakistan Stock Exchange, and we got 120 responses for 2018. In our research, multiple findings found a positive relationship between conscientiousness, neuroticism, and openness.

Please see the link :- https://globalpresshub.com/index.php/AJEFM/article/view/744