Investors' Cognitive Biases Expose Vulnerabilities and Impact Stock Market Success.
The study looked at how different cognitive biases affect groups of investors on the Iran Stock Exchange. They found that biases like confirmation bias and loss aversion often occur together in investors. Gender doesn't affect how biases are grouped, but age and experience do. Young, experienced investors with large investments are less affected by biases. Older, experienced investors are less affected by biases except for the Dunning-Kruger effect. Inexperienced investors are most vulnerable to biases. More than 40% of investors use consultation and technical analysis to trade successfully. The study used unsupervised learning methods to group investors based on their behaviors.