The Behavior Patterns of Investors in Thailand Stock Market

Abstract

The purpose of this paper is to investigate behavioral patterns expressed by investors in the Thailand stock market. The paper examines investment decision-making processes in the context of the current financial market in Thailand to shed some light on behavioral-induced pattern behind such investments. Data for this research was collated from 8 individual investors by semi-structured and in-depth interview. There are four behavioral factors of individual investors in Thailand Stock Exchange: Overconfidence, Excessive Optimism, Psychology of risk, and Herding Behavior. Securities Companies may also use the findings of this research for better understanding on investors' decision to give better recommendations to them. Stock prices then reflect their true value and Thailand stock market becomes the yardstick of the economy's wealth and helps enterprises to raise capital for business activities.

Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange

“…As a result, by combining the responses to questions 1 and 3, we can conclude that 58.6% of the respondents are optimistic. This finding is consistent with other research by Tariq and Ullah (2013) regarding the Pakistani Stock Market, and Tran (2017) regarding the Thailand Stock Market. Half of the participants in this survey (51.5%) describe themselves as short-term investors, as their strategy in the market is to buy shares and then sell them when the market increases.…”

“…Since participants from all of the age groups follow the market trend, this may be an indicator that herd behaviour is widespread among individual investors in KSE. This result is similar to research by Al-Tuhaih (1983), Abul (2003), Shabgou and Mousavi (2016), and Tran (2017). This factor may cause volatility in KSE.…”