ECONOMIC BASIS OF DECISION-MAKING BY RETAIL INVESTORS ON THE STOCK MARKET

Authors

DOI:

https://doi.org/10.31732/2663-2209-2024-75-11-20

Keywords:

economic approach, retail investor, stock market, efficiency, social trading, robotic algorithms

Abstract

The article studies the economic principles of retail investors' activities, which help to make effective decisions on the stock market. Considerable attention is paid to the possibilities of information and analytical trading platforms, which it is advisable to use for retail investors to increase the profitability of investments. The decision-making algorithm of retail investors has been studied. Key factors in the growth of activity of retail investors on the stock market are analyzed in detail. As a result, four main factors leading to effective decision-making by retail investors and obtaining significant economic benefits were identified. It has been proven that retail investors can collectively have a significant impact on the market. It has been found that through successful asset investment and effective decision-making, they influence the choice of certain products, in particular ESG. It is recommended to use the possibilities of social trading as an innovative way of trading and investing through special copy-trading programs. The possibility of automating financial and investment operations with the help of robotic algorithms of the stock market by connecting them to a brokerage account is considered. Information and analytical trading programs aimed at making money and auxiliary (service) algorithms were studied. It is reasonable to use a proactive and disciplined approach to investing, due to which retail investors can significantly increase their chances of making a profit. Possibilities of further research on this topic in the direction of using the latest financial programs based on artificial intelligence and comprehensive assessment of the interaction of various sectors of the stock market with their help are considered.

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Author Biographies

Ihor Rumyk, KROK University

Doctor of Science (Economics), Professor, Head of Economy and Finance Department, KROK University, Kyiv

Serhii Ziemtsov, KROK University

Postgraduate student, KROK University, Kyiv

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Published

2024-09-27

How to Cite

Rumyk, I., & Ziemtsov, S. (2024). ECONOMIC BASIS OF DECISION-MAKING BY RETAIL INVESTORS ON THE STOCK MARKET. Science Notes of KROK University, (3(75), 11–20. https://doi.org/10.31732/2663-2209-2024-75-11-20

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