Investigating the effect of three different factors including experience, personality and color on the decision-making process in stock markets using EEG

Abstract

Stock markets and exchanges are crucial economic pillars in every country. Decision-making in the stock market poses significant challenges and fundamental problems for investors in this field. According to studies conducted in the field of psychology, it has been found that investors' personal experiences and personality characteristics are among the factors that influence their decision-making.

This research aims to examine the impact of three factors, namely personal experience, personality, and color, on the decision-making process of investors in stock markets, with a focus on the perspective of neuroscience. The data analysis method employed in this study involved analyzing the brain signals of investors using electroencephalography (EEG). This test was conducted individually for each participant within a simulated environment resembling the Iran stock market.

Finally, the analysis of the results revealed that the level of investors' experience significantly impacts their performance and decision-making. Additionally, in certain cases, the brain function of these individuals exhibits contrasting patterns. When examining the performance of two personality types, namely extroverted and introverted, during transactions, the findings indicated that their decision-making approaches differ across various situations. Extroverted participants exhibited a greater emotional response at various intervals compared to introverted participants. Furthermore, the analysis of the results indicated that altering the color of the numbers in the simulated trading environment influenced the emotions and reactions of investors.