Individual investors’ trading behavior in Moscow Exchange and the COVID-19 crisis

Djalilov, Abdulaziz; Ülkü, Numan

doi:10.1016/j.jbef.2021.100549

Cited by 17 publications

(11 citation statements)

References 45 publications

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“…The study revealed that experts’ financial advice prompts investors with traits of openness and neuroticism to trade more frequently than investors who possess other traits like extraversion and conscientiousness. Several studies have also been undertaken during the period of COVID-19 to check the impact of pandemic on the trading behaviour of noise traders (Djalilov and Ülkü, 2021; Guo et al , 2021).…”

Section: Content Analysismentioning

confidence: 99%

A systematic literature review and bibliometric analysis of noise trading

Gupta

Walia

Singh

et al. 2022

QRFM

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Purpose This comprehensive study aims to take a punctilious approach intended to present qualitative and quantitative knowledge on the emerging concept of noise trading and identify the emerging themes associated with noise trading. Design/methodology/approach This study combines bibliometric and content analysis to review 350 publications from top-ranked journals published from 1986 to 2020. Findings The bibliometric and content analysis identified three major themes: the impact of noise traders on the functioning of the stock market, traits of noise traders and different proxies used to measure the impact of noise trading. Research limitations/implications This study undertakes research papers related to the field of finance, published in peer-reviewed journals and that too in the English language. Practical implications This study shall accommodate rational traders, portfolio consultants and other investors to gain deeper insights into the functioning of noise traders. This will further help them to formulate their trading/investment strategies accordingly. Originality/value The successful combination of the bibliometric and content analysis revealed major gaps in the literature and provided future research directions.

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Section: Content Analysismentioning

confidence: 99%

A systematic literature review and bibliometric analysis of noise trading

Gupta

Walia

Singh

et al. 2022

QRFM

View full text Add to dashboard Cite

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“…Based on French data, Foucault et al (2011) give evidence that retail investors increase stock return volatility as they are noise traders. Bertero et al (1990) clarifies that in crisis, psychological factors controlled the investor as there is a few of information available, Moreover, Djalilov et al (2021) mentioned that when COVID-19 appears, this pandemic has resulted in a significant increase in retail investor presence in stock markets around the world. Retail investors are now recognized as a market-driving force as of early 2021.…”

Section: Introductionmentioning

confidence: 98%

Who really affect the Egyptian stock market prices retail or institutional investor during COVID-19 pandemic

جمیل¹

2022

مجلة البحوث الإداریة

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In this article the researcher aims to literature who really drive the market during COVID-19, by understanding the effect of both retail and institutional investor on the Egyptian stock market, as many researches recently notes in many countries that stock markets driven by retail investors, as fear dominated the financial markets from the successive closures in the countries, and the indicators of the financial markets began to turn red. the article find that when COVID-19 appeared as a result in a dramatically failed in the prices, so the retail investors sell their securities in the market to minimize their losses, so the institutional investor manage their portfolios by maintaining their position without selling and buy from retail the best stocks to enhance their portfolio and try to stop the collapse of the market.

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“…These factors include easy monetary policy of many central banks, falling rates on debt instruments and bank deposits, COVID-19-related fiscal relief packages, and the development of investment platforms designed for trading via mobile apps and for discussion in social networks. Stock exchanges globally have experienced an increase in the share of retail investors in trading volume [1]. For example, in Russia, the share of retail investors in the trading volume of domestic stocks increased from 34% in 2013 to 40% in 2020, and it reached 43% in mid-2021 ( [1]; MOEX bulletins).…”

Section: Introductionmentioning

confidence: 99%

“…Stock exchanges globally have experienced an increase in the share of retail investors in trading volume [1]. For example, in Russia, the share of retail investors in the trading volume of domestic stocks increased from 34% in 2013 to 40% in 2020, and it reached 43% in mid-2021 ( [1]; MOEX bulletins). In the largest stock market of the US, the share of retail investors increased from 13% in 2013 to 24% in mid-2021 (source: Bloomberg Intelligence) (https://www.bloomberg.com/news/articles/2021-11-17/retail-traders-retreat-as-choppymarkets-challenge-easy-profits).…”

Section: Introductionmentioning

confidence: 99%

A retail investor in a cobweb of social networks

Теплова¹,

Tomtosov

Соколова³

2022

PLoS ONE

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In this study, using AI, we empirically examine the irrational behaviour, specifically attention-driven trading and emotion-driven trading such as consensus trading, of retail investors in an emerging stock market. We used a neural network to assess the tone of messages on social media platforms and proposed a novel Hype indicator that integrates metrics of investor attention and sentiment. The sample of messages, which are written in Russian with slang expressions, was retrieved from a unique dataset of social network communication of investors in the Russian stock market. Applying different portfolio designs, we evaluated the effectiveness of the new Hype indicator against the factors of momentum, volatility, and trading volume. We found the possibility of building a profitable trading strategy based on the Hype indicator over a 6-month time horizon. Over short periods, the Hype indicator allows investors to earn more by buying stocks of large companies, and over «longer» periods, this indicator tends to perform better for illiquid stocks of small companies. As consensus trading tends to produce negative returns, the investment strategy of ‘Go against the crowd’ proves rewarding in the medium term of 3 months.

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Individual investors’ trading behavior in Moscow Exchange and the COVID-19 crisis

Cited by 17 publications

References 45 publications

A systematic literature review and bibliometric analysis of noise trading

A systematic literature review and bibliometric analysis of noise trading

Who really affect the Egyptian stock market prices retail or institutional investor during COVID-19 pandemic

A retail investor in a cobweb of social networks

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