Paper Type
Research-in-Progress Paper
Description
As the evolvement of financial trading technology with wireless network infrastructure, mobile trading technology has emerged to meet investors´ requirements to access the financial markets regardless of time and place. However, being like a "two-edged sword", mobile trading technology may affect investors´ irrational trading behaviors negatively. This research investigates both the positive and negative effect of mobile trading technology on investors´ behaviors including rational disciplined trading and irrational overtrading. According to the nature of mobile trading technology, this study suggests mobile trading platform improves investors trading perceptions in terms of perceived efficiency and perceived informativeness. Then, the influnce of mobile trading platform usage on investors´ disciplined trading is examined. Meanwhile, from the perspectives of behavioral finance and impulse control disorder, the study explores how mobile trading technology impacts investors´ overtrading with the presence of cognitive biases or psychiatric disorder. In the future work, a survey will be conducted to test the hypotheses.
THE IMPACT OF MOBILE TRADING TECHNOLOGY ON INDIVIDUAL INVESTORS´ TRADING BEHAVIORS: THE "TWO-EDGED SWORD" EFFECT
As the evolvement of financial trading technology with wireless network infrastructure, mobile trading technology has emerged to meet investors´ requirements to access the financial markets regardless of time and place. However, being like a "two-edged sword", mobile trading technology may affect investors´ irrational trading behaviors negatively. This research investigates both the positive and negative effect of mobile trading technology on investors´ behaviors including rational disciplined trading and irrational overtrading. According to the nature of mobile trading technology, this study suggests mobile trading platform improves investors trading perceptions in terms of perceived efficiency and perceived informativeness. Then, the influnce of mobile trading platform usage on investors´ disciplined trading is examined. Meanwhile, from the perspectives of behavioral finance and impulse control disorder, the study explores how mobile trading technology impacts investors´ overtrading with the presence of cognitive biases or psychiatric disorder. In the future work, a survey will be conducted to test the hypotheses.