Influence of Heuristics on the Trading Decisions of Equity Derivative Traders in Kerala

Subeesh V. K., Liya K.

Abstract: Behavioural finance is the application of psychology to financial behaviour. Behavioural factors impact the process of investors' decision - making. The primary focus of this study is to examine the influence of heuristics biases on the trading decisions of equity derivative traders in Kerala. The influence of heuristic variables has been examined using four variables such as gambler's Fallacy, overconfidence, anchoring, and representativeness. This study found that the heuristic variables strongly influence the trading decision of equity derivative traders in Kerala, and there is no significant difference in the influence of heuristic variables between different demographic groups of equity derivative traders in Kerala.

Keywords: Heuristics, Equity Derivative, Behavioural Biases, Trading Decisions

How to Cite?: Subeesh V. K., Liya K., "Influence of Heuristics on the Trading Decisions of Equity Derivative Traders in Kerala", Volume 13 Issue 5, May 2024, International Journal of Science and Research (IJSR), Pages: 1833-1837, https://www.ijsr.net/getabstract.php?paperid=ES24510104904, DOI: https://dx.doi.org/10.21275/ES24510104904