IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v1y2010i2p717-722.html
   My bibliography  Save this article

Behavioral Biases In Trading Securities

Author

Listed:
  • Dedu Vasile

    () (Academia de Studii Economice Bucuresti, Facultatea de Finante, Asigurari, Banci si Burse de Valori)

  • Turcan Radu Olimpiu Calin

    () (Universitatea din Oradea, Facultatea de Stiinte Socio-Umane)

  • Turcan Ciprian Sebastian

    () (Doctorand in cadrul ASE Bucuresti,)

Abstract

The main thesis of this paper represents the importance and the effects that human behavior has over capital markets. It is important to see the link between the asset valuation and investor sentiment that motivate to pay for an asset a certain prices over/below the intrinsic value. The main behavioral aspects discussed are emotional factors such as: fear of regret, overconfidence, perseverance, loss aversion ,heuristic biases, misinformation and thinking errors, herding and their consequences.

Suggested Citation

  • Dedu Vasile & Turcan Radu Olimpiu Calin & Turcan Ciprian Sebastian, 2010. "Behavioral Biases In Trading Securities," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 717-722, December.
  • Handle: RePEc:ora:journl:v:1:y:2010:i:2:p:717-722
    as

    Download full text from publisher

    File URL: http://anale.steconomiceuoradea.ro/volume/2010/n2/113.pdf
    Download Restriction: no

    More about this item

    Keywords

    Behavioral finance; Investor psychology; Irrationality; market efficiency; Behavioral biases; limits to arbitrage;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2010:i:2:p:717-722. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE). General contact details of provider: http://edirc.repec.org/data/feoraro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.