The influence of investor's personal traits in investment biases
Abstract
Investors and market traders do not always make the decisions and actions based on
rational, but they are also influenced by psychological factors such as their own
personality traits as so-called behavioral biases in their decision-making process.. The
research studies about the relationship between personality traits and financial behavioral
biases of investors in Ho Chi Minh Stock Exchange (HOSE). The analysis results reveal
that both five traits Extraversion, Agreeableness, Conscientiousness, Neuroticism and
Openness have relationships with three types of investment biases: Overconfidence,
Herding and Disposition effect.. In other words, these traits have direct impact to decision
making of HCM investors. This study helps investors gain the knowledge about types of
biases resulted from their own personality traits during decision making process.
Key words: Traits, Investment Biases, Stock investors, Ho Chi Minh stock exchange.