INVESTOR PSYCHOLOGY VS. SPECULATOR PSYCHOLOGY: A COMPARATIVE STUDY
DOI:
https://doi.org/10.62737/j2zf6390Keywords:
Behavioural Finance, Investor Psychology, Speculator Psychology, Market EfficiencyAbstract
This study delves into the psychological distinctions between investors and speculators, with a focus on their decision-making processes and behavioral biases. Investors generally display traits such as patience, risk aversion, and a long-term perspective, whereas speculators often exhibit high-risk tolerance, impulsivity, and a short-term focus. Both groups are influenced by psychological biases like overconfidence, herd mentality, and loss aversion, which shape their market behaviors and outcomes in different ways. Understanding these psychological factors is essential for enhancing investment strategies, mitigating irrational decision-making, and anticipating market fluctuations. This research makes a significant contribution to behavioral finance by providing insights into the cognitive processes that drive financial decisions, thereby promoting financial stability and market efficiency.
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