scholarly journals STOCK MARKET INVESTORS MECHANICS AND THEIR BLUNDERS

2016 ◽  
Vol 4 (2) ◽  
pp. 243-249
Author(s):  
Ravi Kumar ◽  
Rohini Sajjan

Investment mistakes happen for a multitude of reasons, including the fact that decisions made under conditions of uncertainty that are irresponsibly downplayed by market gurus and institutional spokespersons.  Losing money on an investment may not be the result of a mistake, and not all mistakes result in monetary losses. But errors occur when judgment is unduly influenced by emotions, when the basic principles of investing are misunderstood, and when misconceptions exist about how securities react to varying economic, political, and hysterical circumstances. Proper planning and using of techniques, strategies can come as rescue to the investor and help in reaping profits and avoiding the blunders that are commonly observed. The paper investigates the basis for investment patter by the investor, their techniques and strategies adopted and guidelines to be followed to avoid the common blunders made by them leading to fewer losses they would face otherwise.

2018 ◽  
Vol 45 (11) ◽  
pp. 1550-1566
Author(s):  
Dharani Munusamy

Purpose The purpose of this paper is to examine the behavior of the stock market returns in the different days of the week and different months of the year in accordance with the Islamic calendar. Further, the study estimates the risk-adjusted returns to test the performance of the indices during the Ramadan and non-Ramadan days. Finally, the study investigates the impact of Ramadan on the returns and the volatility of the stock market indices in India. Design/methodology/approach Initially, the study applies the Ordinary Least Square method to test the day-of-the-week and the month-of-the-year effect of the common and Shariah indices. Next, the study employs the risk-adjusted measurement to examine the underperformance and over-performance of the indices for both the periods. Finally, the study estimates the GARCH (1,1) and GJR-GARCH (1,1) models to observe the impact of Ramadan on the returns and the volatility of the Shariah indices in India. Findings The study finds that an average return of the indices during the Ramadan days are higher than non-Ramadan days. Further, the average returns of the Shariah indices are significantly higher on Wednesday than other days of the week. In addition, the highest and significant mean returns and mean risk-adjusted returns of the indices during the Ramadan days are observed. Finally, the study finds an evidence of the Ramadan effect on the returns and volatility of the indices in India. Originality/value The study observes evidence that the Ramadan effect influences the Shariah indices, but not the common indices in the stock market of the non-Muslim countries. It indicates that the Ramadan creates the positive mood and emotions in the investors buying and selling activities. The study suggests that investors can buy the shares before Ramadan period and sell them during the Ramadan days to get an abnormal return in the emerging markets.


2021 ◽  
Vol 2 (5) ◽  
pp. 349-365
Author(s):  
Rashesh Vaidya

The paper attempts to examine the experience of the Nepalese investors at the secondary market. The paper explored the investment decisions process of the Nepalese investors. The paper has adopted the grounded theory to generate the theory from the data collected from the semi-structured interview from the stock market investors having an academic background in management. The findings revealed that the investors are eager to invest in the stock market and go for a better experience from their trading at the NEPSE floor. The study exposed a mixed opinion in context to the understanding of the macroeconomic aspects and their influence on investment decisions. The investors forwarded that there is no relation between their investment decision-making process and the macroeconomic factors, while some of the investors stated that they see a connection of the economy with the stock market directly or indirectly. The study came out that the major concern of the Nepalese investors is a fundamental aspect of the listed companies while selecting for an investment. At the same time, investors stated that they go for technical analysis or follow the market trend for the short-term trading at NEPSE floor. The investors are seen at one point that the unstable political situation and insider trading have been major challenges, in context to the Nepalese stock market. Finally, the excessive flow of information related to the listed companies either with some validity or not, makes an investor’s investment decisions go wrong. 


2021 ◽  
pp. 122-146
Author(s):  
Matthew Johnson ◽  
Jeffrey M. Bradshaw

AbstractCurrent attempts to understand human-machine systems are complex and unwieldy. Multiple disciplines throw different concepts and constructs at the problem, but there is no agreed-to framework to assemble these interrelated moving parts into a coherent system. We propose interdependence as the common factor that unifies and explains these moving parts and undergirds the different terms people use to talk about them. In this chapter, we will describe a sound and practical theoretical framework based on interdependence that enables researchers to predict and explain experimental results in terms of interlocking relationships among well-defined operational principles. Our exposition is not intended to be exhaustive, but instead aims to describe the basic principles in a way that allows the gist to be grasped by a broad cross-disciplinary audience through simple illustrations.


Author(s):  
Didier Sornette

This chapter considers two versions of a rational model of speculative bubbles and stock market crashes. According to the first version, stock market prices are driven by the crash hazard that may increase sometimes due to the collective behavior of “noise traders.” The second version assumes the opposite: the crash hazard is driven by prices that may soar sometimes, again due to investors' speculative or imitative behavior. The chapter first provides an overview of what a model is before discussing the basic principles of model construction in finance. It then describes the basic ingredients of the two models of speculative bubbles and market crashes, along with the main properties of the risk-driven model. It also examines how imitation and herding drive the crash hazard rate and concludes with an analysis of the price-driven model, how imitation and herding drive the market price, and how the price return drives the crash hazard rate.


Author(s):  
Sanja Tatalović Vorkapić ◽  
Petra Prović

The Positive Psychology frame and definition present a natural environment for understanding and researching children's play in the context of nurturing overall positive characteristics in children's development. Therefore, this article presents a structured review of the common ground between the basic principles of positive psychology and children's play in the context of early and preschool institutions. Also, it demonstrates the implementation of positive psychology principles in children's play and the methods by which positive psychology could be promoted through children's play in kindergartens. Within that frame, the importance is given to the needed preschool teachers' competences in this area. In this context, various activities are presented that reflect a common ground of positive psychology and children's play. Finally, some significant guidelines for future research and practice enhancement are presented.


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