- Tytuł:
- The Role of Need for Structure in Technical Analysis and How Identifying Information in Price Movements Raises Traders’ Confidence
- Autorzy:
-
Markiewicz, Łukasz
Czupryna, Marcin
Kubińska, Elżbieta - Powiązania:
- https://bibliotekanauki.pl/articles/1198430.pdf
- Data publikacji:
- 2020
- Wydawca:
- Akademia Leona Koźmińskiego w Warszawie
- Tematy:
-
technical analysis
chartists
overconfidence
confidence
dubious data
cognitive closure - Opis:
- Technical analysis (TA) is a tool believed to support investor’s investment decisions. Even if research has demonstrated that TA cannot be used to make systematic profits over a long time period, it could potentially bring psychological payoffs to its users in the form of enhancing their confidence. In an experimental study we show that: (1) chartists demonstrate overconfidence in TA usage, believing that they are better than they actually are in TA formation recognition, and that; (2) the act of naming an observed trend as a TA formation brings extra confidence to the chartist, regardless of whether this is a real TA sequence or a random sequence. Thus, both naming an existing TA formation as a TA formation and naming a random sequence as a TA formation result in greater confidence.Also, irrespective of the high popularity of TA among investors, there are marked individual differences in TA followers. In a questionnaire study, we demonstrate that declared positive attitudes toward TA correlate positively with high need for (cognitive) closure (as measured by the Need for Cognitive Closure Scale; NFCS), specifically, desire for predictability.
- Źródło:
-
Decyzje; 2020, 33; 75-96
1733-0092
2391-761X - Pojawia się w:
- Decyzje
- Dostawca treści:
- Biblioteka Nauki
Artykuł