BEHAVIORAL BIASES TOWARDS INVESTMENT DECISION WITH THE MODERATING ROLE OF TECHNICAL ANALYSIS

A CONCEPTUAL PAPER

Authors

  • Nurul Haida Johan Faculty of Business and Management, Universiti Teknologi MARA, UiTM Johor Segamat Campus, 85000 Segamat, Johor, Malaysia
  • Faridah Najuna Misman Faculty of Business and Management, Universiti Teknologi MARA, UiTM Johor Segamat Campus, 85000 Segamat, Johor, Malaysia
  • Ahmad Syahmi Ahmad Fadzil Faculty of Business and Management, Universiti Teknologi MARA, UiTM Johor Segamat Campus, 85000 Segamat, Johor, Malaysia

Keywords:

Behavioral Biases, Investment Decision, Technical Analysis

Abstract

Traditional finance believes that an investor always gathers all the necessary information and rationally reacts in their investment decisions. However, behavioral finance recognizes that human emotions, biases, and cognitive errors have a significant impact on making decisions for investment in the stock market. Investment decisions involve the process by which investors select the most appropriate investment strategy when analyzing various investment opportunities. Behavioral biases on the other hand can influence individuals' investment decisions and lead them to make choices that deviate from their objectives because rely more on emotion. Knowledge of technical analysis as an investment tool will control and help investors make investment decisions properly and achieve positive returns. Hence, this conceptual paper aims to propose a research framework that empirically examines the relationship between behavioral biases toward investment decisions with the moderating role of technical analysis. The finding will become a starting point for future research where this knowledge has uses in both academic and business practitioners.



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Published

2024-10-03

Issue

Vol. 11 No. 2 (2024): Volume 11 Issue 2

Section

BUSINESS MANAGEMENT