BEHAVIORAL FINANCE IN THE DIGITAL ERA: ANALYZING INVESTOR BEHAVIOR ON ONLINE TRADING PLATFORMS AND SOCIAL MEDIA

Abstract

Behavioral finance inside the digital era examines how intellectual biases have an impact on investor selection-making on online buying and promoting systems and social media. With the upward push of set of regulations-pushed structures and without delay get entry to economic information, buyers increasingly depend on virtual equipment, regularly principal to cognitive biases including herding behavior, overconfidence, and loss aversion. Social media structures like Twitter and Reddit extend market traits, developing speculative bubbles and volatility, as seen in meme stock rallies and cryptocurrency fluctuations. The integration of artificial intelligence and robo-advisors has reshaped economic choice-making, but human feelings maintain to force irrational funding behaviors. Additionally, the unfold of financial incorrect information and the gamification of buying and promoting contribute to impulsive movements, impacting portfolio ordinary performance. This have a have a examine explores key behavioral biases, the characteristic of social sentiment in asset fee movements, and the risks related to digitally inspired shopping for and selling. Understanding these patterns can assist buyers broaden strategies to mitigate biases and enhance rational choice-making in the evolving monetary landscape. Future research have to awareness on balancing technological upgrades with investor training to promote informed and disciplined looking for and selling behavior.