Research Article
Overconfidence: Technical Analysis in Trading, Investment or Gambling?
@INPROCEEDINGS{10.4108/eai.21-9-2019.2293942, author={Sri Utami Ady and Alvy Mulyaningtyas and Ilya Farida}, title={Overconfidence: Technical Analysis in Trading, Investment or Gambling?}, proceedings={Proceedings of the 1st Conference on Islamic Finance and Technology, CIFET, 21 September, Sidoarjo, East Java, Indonesia}, publisher={EAI}, proceedings_a={CIFET}, year={2020}, month={5}, keywords={overconfidence qualitative fenomenology investor behavior}, doi={10.4108/eai.21-9-2019.2293942} }- Sri Utami Ady
Alvy Mulyaningtyas
Ilya Farida
Year: 2020
Overconfidence: Technical Analysis in Trading, Investment or Gambling?
CIFET
EAI
DOI: 10.4108/eai.21-9-2019.2293942
Abstract
The purpose of this study is to understand and explore the overconfidence behavior of individual investors trading stocks. Overconfidence is the overconfidence of investors' behavior in analyzing stocks that causes various mistakes in decision making depending on the type of technology or analytical method used by investors in various types of trading. The method used in this study is a qualitative method with interpretive phenomenological design, informant search with indepth interview method and analytical method with phenomenological method from Moustakas. The results showed that all informants in this study experienced overconfidence in their respective conditions. Especially for day trading. Overconfidence will cause overtrading by only using technical analysis using charts and charts, which ultimately results in speculative behavior that leads to gambling or gambling. which is prohibited in Islam and is no longer an investment. The limitation of this research is the lack of types of investor scalpers that have not been obtained by researchers. The implication of this research is that the techniques or methods used in investment decision making determine the success of investing.