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

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

doi:10.4018/978-1-7998-8049-3.ch002

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 proceeding › Chapter › peer-review

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 language	English
Title of host publication	Research Anthology on Personal Finance and Improving Financial Literacy
Editors	Mehdi Khosrow-Pour, Steve Clarke, Murray E Jennex, Ari-Veikko Anttiroiko
Publisher	IGI Global Publishing
Chapter	2
Pages	21-39
Number of pages	19
ISBN (Electronic)	9781799881018
ISBN (Print)	9781799880493, 1799880494
DOIs	https://doi.org/10.4018/978-1-7998-8049-3.ch002
Publication status	Published - 1 Dec 2020

Publication series

Name	Research Anthology on Personal Finance and Improving Financial Literacy
Publisher	IGI Global

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.4018/978-1-7998-8049-3.ch002Licence: Unspecified

Cite this

Bilgin, Y., Camgoz, S. M., Karan, M. B., & Yildiz, Y. (2020). Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets. In M. Khosrow-Pour, S. Clarke, M. E. Jennex, & A-V. Anttiroiko (Eds.), Research Anthology on Personal Finance and Improving Financial Literacy (pp. 21-39). (Research Anthology on Personal Finance and Improving Financial Literacy). IGI Global Publishing. https://doi.org/10.4018/978-1-7998-8049-3.ch002

Bilgin, Yavuz ; Camgoz, Selin Metin ; Karan, Mehmet Baha et al. / Understanding the Investment Behavior of Individual Investors : An Empirical Study on FOREX Markets. Research Anthology on Personal Finance and Improving Financial Literacy. editor / Mehdi Khosrow-Pour ; Steve Clarke ; Murray E Jennex ; Ari-Veikko Anttiroiko. IGI Global Publishing, 2020. pp. 21-39 (Research Anthology on Personal Finance and Improving Financial Literacy).

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title = "Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets",

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.",

keywords = "FOREX, Trading behaviour, Investment performance",

author = "Yavuz Bilgin and Camgoz, {Selin Metin} and Karan, {Mehmet Baha} and Yilmaz Yildiz",

year = "2020",

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doi = "10.4018/978-1-7998-8049-3.ch002",

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series = "Research Anthology on Personal Finance and Improving Financial Literacy",

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pages = "21--39",

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Bilgin, Y, Camgoz, SM, Karan, MB & Yildiz, Y 2020, Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets. in M Khosrow-Pour, S Clarke, ME Jennex & A-V Anttiroiko (eds), Research Anthology on Personal Finance and Improving Financial Literacy. Research Anthology on Personal Finance and Improving Financial Literacy, IGI Global Publishing, pp. 21-39. https://doi.org/10.4018/978-1-7998-8049-3.ch002

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

Research Anthology on Personal Finance and Improving Financial Literacy. ed. / Mehdi Khosrow-Pour; Steve Clarke; Murray E Jennex; Ari-Veikko Anttiroiko. IGI Global Publishing, 2020. p. 21-39 (Research Anthology on Personal Finance and Improving Financial Literacy).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

TY - CHAP

T1 - Understanding the Investment Behavior of Individual Investors

T2 - An Empirical Study on FOREX Markets

AU - Bilgin, Yavuz

AU - Camgoz, Selin Metin

AU - Karan, Mehmet Baha

AU - Yildiz, Yilmaz

PY - 2020/12/1

Y1 - 2020/12/1

N2 - 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.

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 - Trading behaviour

KW - Investment performance

UR - https://www.igi-global.com/book/research-anthology-personal-finance-improving/267375

U2 - 10.4018/978-1-7998-8049-3.ch002

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M3 - Chapter

SN - 9781799880493

SN - 1799880494

T3 - Research Anthology on Personal Finance and Improving Financial Literacy

SP - 21

EP - 39

BT - Research Anthology on Personal Finance and Improving Financial Literacy

A2 - Khosrow-Pour, Mehdi

A2 - Clarke, Steve

A2 - Jennex, Murray E

A2 - Anttiroiko, Ari-Veikko

PB - IGI Global Publishing

ER -

Bilgin Y, Camgoz SM, Karan MB, Yildiz Y. Understanding the Investment Behavior of Individual Investors: An Empirical Study on FOREX Markets. In Khosrow-Pour M, Clarke S, Jennex ME, Anttiroiko A-V, editors, Research Anthology on Personal Finance and Improving Financial Literacy. IGI Global Publishing. 2020. p. 21-39. (Research Anthology on Personal Finance and Improving Financial Literacy). doi: 10.4018/978-1-7998-8049-3.ch002

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

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

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