Do investors’ personalities predict market winners? Experimental setting and machine learning analysis
This study uses experiments and surveys from 146 participants who participated in equity trading to explore the predictive power of the Big-five personality traits, social behaviours, along with self-attribution and demographic characteristics on trading performance. Interestingly, we found that inv...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-04-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023024805 |
| _version_ | 1797836968345731072 |
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| author | Huan Huu Nguyen Vu Minh Ngo Thao Thi Phuong Le Phuc Van Nguyen |
| author_facet | Huan Huu Nguyen Vu Minh Ngo Thao Thi Phuong Le Phuc Van Nguyen |
| author_sort | Huan Huu Nguyen |
| collection | DOAJ |
| description | This study uses experiments and surveys from 146 participants who participated in equity trading to explore the predictive power of the Big-five personality traits, social behaviours, along with self-attribution and demographic characteristics on trading performance. Interestingly, we found that investors who are more open and neurotic gain higher returns compared to the market benchmark. We also found that other social traits are associated with the effectiveness of stock trading, such as awareness of social and ethical virtues (fairness and politeness). Moreover, instead of using separate characteristics, this study employs machine learning to cluster these personal features to understand the interconnection between socioeconomic determinants and financial decisions. This study contributes new evidence to the existing literature that personalities could explain trading performance. |
| first_indexed | 2024-04-09T15:17:26Z |
| format | Article |
| id | doaj.art-a49d6abb50f148db8eaaa29fd930f904 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-04-09T15:17:26Z |
| publishDate | 2023-04-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-a49d6abb50f148db8eaaa29fd930f9042023-04-29T14:56:01ZengElsevierHeliyon2405-84402023-04-0194e15273Do investors’ personalities predict market winners? Experimental setting and machine learning analysisHuan Huu Nguyen0Vu Minh Ngo1Thao Thi Phuong Le2Phuc Van Nguyen3University of Economic Ho Chi Minh City, School of Banking, Address: 59C Nguyen Dinh Chieu Street, Ward 6, District 3, Ho Chi Minh City, Viet NamUniversity of Economic Ho Chi Minh City, School of Banking, Address: 59C Nguyen Dinh Chieu Street, Ward 6, District 3, Ho Chi Minh City, Viet Nam; Corresponding author.University of Economic Ho Chi Minh City, School of Banking, Address: 59C Nguyen Dinh Chieu Street, Ward 6, District 3, Ho Chi Minh City, Viet NamUniversity of Banking Ho Chi Minh City (HUB), 36 Ton That Dam Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Viet NamThis study uses experiments and surveys from 146 participants who participated in equity trading to explore the predictive power of the Big-five personality traits, social behaviours, along with self-attribution and demographic characteristics on trading performance. Interestingly, we found that investors who are more open and neurotic gain higher returns compared to the market benchmark. We also found that other social traits are associated with the effectiveness of stock trading, such as awareness of social and ethical virtues (fairness and politeness). Moreover, instead of using separate characteristics, this study employs machine learning to cluster these personal features to understand the interconnection between socioeconomic determinants and financial decisions. This study contributes new evidence to the existing literature that personalities could explain trading performance.http://www.sciencedirect.com/science/article/pii/S2405844023024805E22 |
| spellingShingle | Huan Huu Nguyen Vu Minh Ngo Thao Thi Phuong Le Phuc Van Nguyen Do investors’ personalities predict market winners? Experimental setting and machine learning analysis Heliyon E22 |
| title | Do investors’ personalities predict market winners? Experimental setting and machine learning analysis |
| title_full | Do investors’ personalities predict market winners? Experimental setting and machine learning analysis |
| title_fullStr | Do investors’ personalities predict market winners? Experimental setting and machine learning analysis |
| title_full_unstemmed | Do investors’ personalities predict market winners? Experimental setting and machine learning analysis |
| title_short | Do investors’ personalities predict market winners? Experimental setting and machine learning analysis |
| title_sort | do investors personalities predict market winners experimental setting and machine learning analysis |
| topic | E22 |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023024805 |
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