A Comprehensive Analysis of the Behavioural Factors Influencing Stock Market Investing
DOI:
https://doi.org/10.33516/maj.v59i5.24-27pKeywords:
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To engage in stock market investment, one must navigate a complex environment that encompasses several aspects such as financial analysis, economic data, and market mood. However, a sometimes-overlooked aspect that plays a crucial role in influencing investment choices is the field of human psychology. The topic of behavioural finance examines the impact of cognitive biases and behavioural tendencies on investors' behaviours, which in turn affects market dynamics. This academic analysis examines eleven prominent behavioural factors, ranging from cognitive dissonance to endowment bias, to clarify how they emerge in investment choices and the resulting impact on stock market performance. By being aware of and recognising these biases, investors can take proactive steps to reduce their influence, thereby creating an environment that promotes making wellinformed and logical investing choices that match with long-term financial goals.
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