Personal Traits in Trading Behaviors: An Analysis of Personal characteristics
Keywords
No Thumbnail Available
Authors
Issue Date
2020-08-10
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
I investigate the relationship between traders’ personal characteristics and their
trading behaviors and outcomes with experimental asset market data. Particularly, I
approach from new perspectives which are the differences in the sensitivity of two
basic neuro physiological systems – the Behavioral Inhibition System (BIS), reacting
with negative feeling and signals, and the Behavioral Approach System (BAS),
motivate human behaviors toward positive experiences, as well as the Type A
behaviors. By analysing data from 43 independent experimental asset markets with
a total of 387 participants, I find that difference in BIS negatively influences trader’s
income, and the subscales of BAS, Drive, representing the persistence in pursuiting
a goal, shows a positive correlation to Income and number of stocks in the portfolio.
I also find consistent positive effect of Math ability on trading frequency, trading
price, stock holdings and Income, while Type A personality shows no effect to all
dependent variables. Although I expect that Risk tolerance will have impact on
trader’s beahviors and Income, I only find supporting evidence of this factor’s effect
on number of stockes held by individuals.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen