Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets

Yavuz Bilgin, Selin Metin Camgoz, Mehmet Baha Karan, Yilmaz Yildiz

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The FOREX market has become a popular ground amongst all kinds of market players. The leverage transactions of the market that may generate higher profit levels with low capital/investments make it very attractive for the individual risk takers. The research investigates the trading behavior of FOREX investors relying on the survey data collected from 167 Turkish investors in 2019. Within the scope of the research, the authors evaluate whether and to what extent behavioral factors, namely demographic characteristics; personal characteristics such as personality traits, love of money, and biases like disposition effect influence investment performance. The results reveal that among the personality traits, openness to experience and conscientiousness have a positive impact while disposition effect and love of money have a negative impact on the performance of investors. Additional analysis suggests that the effects of personality traits and biases on trading performance remarkably change among subgroups of investors regarding their income level.
Original languageEnglish
Title of host publicationHandbook of Research on Decision-Making Techniques in Financial Marketing
EditorsHasan Dinçer, Serhat Yüksel
PublisherIGI Global Publishing
Chapter11
Pages228-246
Number of pages19
ISBN (Electronic)9781799825609
ISBN (Print)9781799825593, 1799825590
DOIs
Publication statusPublished - 28 Oct 2019

Publication series

NameAdvances in Marketing, Customer Relationship Management and E-Services
PublisherIGI Global
ISSN (Print)2327-5502
ISSN (Electronic)2327-5529

Fingerprint

Empirical study
Investors
Individual investors
Investment behavior
Personality traits
The love of money
Disposition effect
Investment performance
Factors
Openness
Trading behavior
Income level
Survey data
Demographic characteristics
Personal characteristics
Profit
Conscientiousness
Leverage
Performance change
Capital investment

Cite this

Bilgin, Y., Metin Camgoz, S., Karan, M. B., & Yildiz, Y. (2019). Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets. In H. Dinçer, & S. Yüksel (Eds.), Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 228-246). (Advances in Marketing, Customer Relationship Management and E-Services). IGI Global Publishing. https://doi.org/10.4018/978-1-7998-2559-3.ch011
Bilgin, Yavuz ; Metin Camgoz, Selin ; Karan, Mehmet Baha ; Yildiz, Yilmaz. / Understanding the Investment Behavior of Individual Investors : An Empirical Study on FOREX Markets. Handbook of Research on Decision-Making Techniques in Financial Marketing. editor / Hasan Dinçer ; Serhat Yüksel. IGI Global Publishing, 2019. pp. 228-246 (Advances in Marketing, Customer Relationship Management and E-Services).
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Bilgin, Y, Metin Camgoz, S, Karan, MB & Yildiz, Y 2019, Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets. in H Dinçer & S Yüksel (eds), Handbook of Research on Decision-Making Techniques in Financial Marketing. Advances in Marketing, Customer Relationship Management and E-Services, IGI Global Publishing, pp. 228-246. https://doi.org/10.4018/978-1-7998-2559-3.ch011

Understanding the Investment Behavior of Individual Investors : An Empirical Study on FOREX Markets. / Bilgin, Yavuz; Metin Camgoz, Selin; Karan, Mehmet Baha; Yildiz, Yilmaz.

Handbook of Research on Decision-Making Techniques in Financial Marketing. ed. / Hasan Dinçer; Serhat Yüksel. IGI Global Publishing, 2019. p. 228-246 (Advances in Marketing, Customer Relationship Management and E-Services).

Research output: Chapter in Book/Report/Conference proceedingChapter

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T2 - An Empirical Study on FOREX Markets

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AU - Karan, Mehmet Baha

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PY - 2019/10/28

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AB - The FOREX market has become a popular ground amongst all kinds of market players. The leverage transactions of the market that may generate higher profit levels with low capital/investments make it very attractive for the individual risk takers. The research investigates the trading behavior of FOREX investors relying on the survey data collected from 167 Turkish investors in 2019. Within the scope of the research, the authors evaluate whether and to what extent behavioral factors, namely demographic characteristics; personal characteristics such as personality traits, love of money, and biases like disposition effect influence investment performance. The results reveal that among the personality traits, openness to experience and conscientiousness have a positive impact while disposition effect and love of money have a negative impact on the performance of investors. Additional analysis suggests that the effects of personality traits and biases on trading performance remarkably change among subgroups of investors regarding their income level.

KW - FOREX

KW - Behavioral finance

KW - Big-Five Personality Traits

KW - Love of Money

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Bilgin Y, Metin Camgoz S, Karan MB, Yildiz Y. Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets. In Dinçer H, Yüksel S, editors, Handbook of Research on Decision-Making Techniques in Financial Marketing. IGI Global Publishing. 2019. p. 228-246. (Advances in Marketing, Customer Relationship Management and E-Services). https://doi.org/10.4018/978-1-7998-2559-3.ch011