Behavioural Finance Case Study

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1.1 BACKGROUND OF STUDY

Our understanding and the concept of investment in behavioural finance combines economics and psychology to analyse how and why investors make final decision. As an investor one’s decision to invest is fully influence by different type of attitudes of behavioural and psychological ( Ricciardi & Simon, 2000). Yet, in order to maximize their financial goal, investors must have a good investment planning. Furthermore , to gain a good investment planning , there must be a good decision making among investors. They have to choose the right investment plan I order to manage the resources for different type of investments not only to gain profit wise but also to avoid the risk that occur from investment. …show more content…

There are two types of these investors. First, the type of the investors who are trying to get a big break by trading stock. The second type is someone who is at retiree age or someone is really well paid off. Both don’t care much about their job. It’s like just filling up their time. Thus, they tend to be street smart when it comes to financing. They are the individuals who willing to take the risk when it comes to trading or investing. They are type of investors who willing to put money in the place where they shouldn’t at first place. They identify, what worked and just imitate …show more content…

They are the individuals who loves to make experiment and try out things which other people have not done or discovered yet. These type of investors which is known as Avant Grade investors will talk about financial products that will make financial professionals wonder since when this thing has been invented. These types of investors would have jumped on the trend of new investments before anyone else had even heard it of it.

Next, the allergic to finance type of investors. These types of investors usually have someone who handles their finance for them. When it comes to investing they doesn’t even know what are the investing of .What they knows they have an investment but really don’t have care to think about it. The best part of these investors they not even really care about the commissions or management fees. They just don’t want to burden their self with explanation or

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