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Professional vs. Non-Professional Investors: A Comparative study into the usage of Investment Tools

GSTF Journal on Business Review

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Title Professional vs. Non-Professional Investors: A Comparative study into the usage of Investment Tools
 
Creator Cohen, Gil
 
Subject
 
Description Investors use varies tools in the investment process.Some use technical or fundamental analysis, or both inthat process. The difference between those investmentstools have been well documented in the financialliterature. However, little have been written about thedifference investment behaviour between professionaland non-professional investors. The aim of thefollowing survey research is to examine differencesbetween professional portfolio managers to nonprofessionalinvestors in their approach towardstechnical and fundamental analysis. We used onlinesurvey in one of the leading business portals in additionto asking professional investors in a leading investmenthouse in Israel. The results show no significantdifference between professional and non-professionalinvestors in terms of how frequently they usefundamental and technical investment tools. Bothgroups of investors use more frequently fundamentaltools than technical when they make buy/sell decisions.Non- professional investors use more fundamental toolssuch as "analysts' recommendations" when they buystocks and more technical tools such as "support andresistance lines" when they sell stocks. Moreover, whileolder investors prefer fundamental tools when they buyand sell stocks, younger investors prefer to usetechnical tools over fundamentals. This importantresult might indicate that younger investor less believein a long time consuming fundamentals analysis thantheir older colleagues and they rather use a more quickmethod that does not demand an extensive effort andknowledge.
 
Publisher GSTF Journal on Business Review (GBR)
 
Contributor
 
Date 2012-10-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
 
Identifier http://dl6.globalstf.org/index.php/gbr/article/view/1227
 
Source GSTF Journal on Business Review (GBR); Vol 2, No 2 (2012): Journal on Business Review (GBR)
ISSN: 2251-2888
2010-4804
 
Language eng
 
Relation http://dl6.globalstf.org/index.php/gbr/article/view/1227/1243
 
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