Effects of Personality on Trading Performance in Social Trading Platforms

Presenter Information

Quanchen Liu, Shanghai Jiao Tong UniversityFollow
Bingqing Xiong, University of Science and Technology of ChinaFollow
Eric Lim, UNSW SydneyFollow
Jiantao Zhu, University of Science and Technology of ChinaFollow

Paper Type

Complete

Paper Number

1173

Description

Social trading platforms offer opportunities for amateur investors to copy professional traders’ behavior. However, past studies on behavioral finance have largely neglected the role of personality in shaping traders’ behavior. To this end, we aim to scrutinize the effects of leader traders’ personality on their trading behaviors and subsequent performance on social trading platforms. Particularly, we employ the Myers–Briggs Type Indicator (MBTI) personality classification scheme to delineate leader traders’ personality into the four dimensions of Extraversion-Introversion (E-I), Sensing-Intuition (S-N), Thinking-Feeling (T-F), and Judging-Perceiving (J-P). Next, we draw on machine learning techniques to advance a novel text-based approach for extracting the personality dimensions of leader traders automatically. Analytical results attest to the impact of personality dimensions on trading behavior and that of trading behavior on performance. Findings from this study yield insights for both social trading platforms and followers by identifying profitable leader traders based on their personality.

Comments

VCC

Recommended Citation

Liu, Quanchen; Xiong, Bingqing; Lim, Eric; and Zhu, Jiantao, "Effects of Personality on Trading Performance in Social Trading Platforms" (2022). AMCIS 2022 Proceedings. 8.
https://aisel.aisnet.org/amcis2022/vcc/vcc/8