BEHAVIOUR BIASES AND INVESTOR INVESTMENT DECISIONS IN PAKISTAN FOREIGN EXCHANGE MARKET

Abstract

The objective of the study is to examine the relationship between various behavioral biases and individual investor stock market investment decisions in Pakistan's foreign exchange market. The sample size of the study consists of 285 individual investor trades excessively from the last 5 years in Pakistan foreign exchange market. Primary data is collected from the selected sample size through a structured questionnaire. The data is analyzed through Descriptive analysis, Correlation, and Multiple Regression Analysis. The results of the study indicate that overconfidence, loss aversion, self-control and representativeness have a significant positive relationship with investor investment decisions in Pakistan Foreign Exchange Market. However, anchoring and mental accounting have an insignificant relationship with investor investment decisions in Pakistan Foreign Exchange Market.