A Study on How Emotions Influence Investment Decisions

R Roshan Gulecha; Neelesh; Abhishek Prakash

A Study on How Emotions Influence Investment Decisions

June 2025

Vol-11, Issue-3

Paper ID: 26928

ISSN: 2395-4396

Downloads: 0

Abstract & Details

Research Area

Behaviour finance

Keywords

Behavioral Finance Investment Decisions Cognitive Biases Prospect Theory Emotional Contagion Social Media Sentiment Market Volatility Neurofinance Retail Trading Algorithmic Analysis.

Abstract

This research report aims to clarify how human emotions influence people's financial decision-making. According to the conventional financial system, people act logically and rationally, but in practice, many investors are swayed by factors like anxiety, overconfidence, loss apprehension, and the behavior of others. In order to demonstrate why people generally don't act in their own best interests when faced with financial circumstances, this study attempts to explain important theories such as prospect theory and mental accounting. By examining actual occurrences like the dotcom boom, the 2008 financial crisis, GameStop stock, and cryptocurrency trading, it demonstrates how emotions impact important market movements. The study focuses especially on social media, since platforms like Reddit and Twitter, in particular, have the power to affect share prices and elicit strong feelings. The study offers suggestions for better laws, technology and investor education to reduce these mistakes. Overall, the study shows that behavioral awareness is necessary to make safer, better-informed financial decisions.

License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Author Information

#	Name	Institute / Affiliation
1	R Roshan Gulecha	St Joseph's university
2	Neelesh	St Joseph's university
3	Abhishek Prakash	St Joseph's university

How to Cite

Use the following formats to cite this article in your research.

APA Style

Gulecha, R Roshan, Neelesh, & Prakash, Abhishek (2025). A Study on How Emotions Influence Investment Decisions. International Journal of Advance Research and Innovative Ideas In Education, 11(3), 3785-3794.

MLA Style

Gulecha, R Roshan, et al. "A Study on How Emotions Influence Investment Decisions." International Journal of Advance Research and Innovative Ideas In Education, vol. 11, no. 3, 2025, pp. 3785-3794.

IEEE Style

R Roshan Gulecha, Neelesh, and Abhishek Prakash, "A Study on How Emotions Influence Investment Decisions," International Journal of Advance Research and Innovative Ideas In Education, vol. 11, no. 3, pp. 3785-3794, 2025.

Vancouver Style

Gulecha R Roshan, Neelesh, Prakash Abhishek. A Study on How Emotions Influence Investment Decisions. International Journal of Advance Research and Innovative Ideas In Education. 2025;11(3):3785-3794.

Harvard Style

Gulecha, R Roshan, Neelesh, & Prakash, Abhishek (2025) 'A Study on How Emotions Influence Investment Decisions', International Journal of Advance Research and Innovative Ideas In Education, 11(3), pp. 3785-3794.

Chicago Style

Gulecha, R Roshan, Neelesh, and Abhishek Prakash. "A Study on How Emotions Influence Investment Decisions." International Journal of Advance Research and Innovative Ideas In Education 11, no. 3 (2025): 3785-3794.

Turabian Style

Gulecha, R Roshan, Neelesh, and Abhishek Prakash. "A Study on How Emotions Influence Investment Decisions." International Journal of Advance Research and Innovative Ideas In Education 11, no. 3 (2025): 3785-3794.