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Behavioral Finance And Speculative Behavior Of Investors: Evidence From Saudi Stock Market

Table 2:

Years of trading experience Respondents (N=130) Percentage (%)
Less than five years 70 53.8 %
5 to 10 years 52 40.%
More than 10 years 8 6.2%
The average size of respondent’s portfolio
Less than SR 100,000 70 53.8%
SR 100,000 - 500,000 36 27.7%
SR 500,001 to 1000,000 16 12.3%
SR 1000,000 and above 8 6.2%
The main factor that negatively affects respondent’s investments in the stock market
Wrong advice from friend/market expert 48 36.9%
Bad market performance 16 12.3%
Insufficient research and analysis before making a decision 30 23.1%
Insufficient knowledge and skill about stock analysis 22 16.9%
My wrong decision 14 10.8%
Other factor 0 0%
The biggest loss in respondent’s portfolio values as a percentage
less than 5% 16 12.3%
5%-10% 26 20%
11%-20% 40 30.8%
More than 20% 48 36.9%
Market sentiments of respondents for the next year
Optimistic 100 76.9%
Pessimistic 30 23.1%
Is respondent willing to increase his/her investments in the stock market next year?
Yes 79 60.8%
No 51 39.2%
The tool used by traders to make a decision in the stock market
Technical Analysis 34 26.2%
Fundamental Analysis 24 18.5%
Rumors 12 9.2%
Media 22 16.9%
Advice 48 36.9%
Intuition 24 18.5%
others 2 1.5%
Does respondent know about the existence of Behavioral Finance?
Yes 30 23.1%
No 100 76.9%
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