May 2014
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1,816 Reads
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4 Citations
IOSR Journal of Business and Management
When it comes to trading stocks, behavior is often an issue. Being aware of the trading behavior of investors is vital as many stockholders are subject to their behavioral influences. This study uses descriptive statistics to investigate the stock trading behavior of investors of Dhaka Stock Exchange, explore the relationship between demographic characteristics and trading behavior, and examine the difference in trading behavior of stock traders with different demographic characteristics. Major findings of this research include majority of the traders have an average holding period of less than a month, target for a minimum profit of 0%-40% before selling stocks, can tolerate a maximum loss of 0-40% before selling their stocks, prefer to the maximum amount of their investment money in the banks and financial institutions, invest more than 50% of their investment money in the most preferred industry. It also finds some differences in trading behavior if they are categorized by gender, age group and highest educational level.