Stock Investments for Non-Professionals: The Role of Technical Analysis in Overcoming Barriers and Encouraging Stock Market Participation
Yakushkova, Mariia (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024120432892
https://urn.fi/URN:NBN:fi:amk-2024120432892
Tiivistelmä
Stock investments are an important part of the discussion concerning the generation of wealth, saving for retirement, and outpacing inflation. Despite the evident numerous benefits, many people do not invest in stocks. Previous research found that stock market participation rates were considerably low across the European Union. Given the high inflation and diminishing purchasing power of money, it is necessary to enable stock investments to everyone regardless of their educational and professional background. The key to the solution is to establish what deters people from investing and determine what can help reduce these concerns.
This thesis explores how technical analysis can reduce investment-related fears and concerns of people with no educational and professional background in finance and no prior stock investment experience in the EU. The purpose of this study is to examine how technical analysis can support investment decision-making and encourage stock market participation among non-professional non-investors.
This thesis employs qualitative research methodology and includes a theoretical overview and empirical study. A theoretical framework is based on the secondary data through reviewing relevant literature, articles, and online sources. The empirical part involves the analysis of primary data collected via qualitative method. The interviews supplied qualitative data and were conducted with the target population in the EU. The data collected during theoretical overview and qualitative research contributed to the examination of the investigative questions.
The results of this study showed that the fear of losing money, a lack of knowledge, a lack of spare money, complexity of stock investments, and risks associated with investing and stocks were named the most common barriers to investing among the target population. Out of the two stock investment strategies tested in the research process, the EMA strategy was found to be a more accessible approach against the MACD strategy from the perspective of a non-professional non-investor. Exposure to technical analysis-based investment strategies positively affected the confidence levels, risk perception, motivation, and interest in applying technical analysis to stock investments among the participants. The research results provided evidence that technical analysis could reduce investment-related fears and increase stock market participation rates through introduction to technical analysis-based investment strategies.
To conclude, this thesis stresses the importance of technical analysis in supporting investment decision-making among people with no educational and professional background and experience in stock investments. This study shows the potential of technical analysis in investment analysis, its ease of learning for individuals without investment experience, and its ability to improve stock market participation rates in the EU.
This thesis explores how technical analysis can reduce investment-related fears and concerns of people with no educational and professional background in finance and no prior stock investment experience in the EU. The purpose of this study is to examine how technical analysis can support investment decision-making and encourage stock market participation among non-professional non-investors.
This thesis employs qualitative research methodology and includes a theoretical overview and empirical study. A theoretical framework is based on the secondary data through reviewing relevant literature, articles, and online sources. The empirical part involves the analysis of primary data collected via qualitative method. The interviews supplied qualitative data and were conducted with the target population in the EU. The data collected during theoretical overview and qualitative research contributed to the examination of the investigative questions.
The results of this study showed that the fear of losing money, a lack of knowledge, a lack of spare money, complexity of stock investments, and risks associated with investing and stocks were named the most common barriers to investing among the target population. Out of the two stock investment strategies tested in the research process, the EMA strategy was found to be a more accessible approach against the MACD strategy from the perspective of a non-professional non-investor. Exposure to technical analysis-based investment strategies positively affected the confidence levels, risk perception, motivation, and interest in applying technical analysis to stock investments among the participants. The research results provided evidence that technical analysis could reduce investment-related fears and increase stock market participation rates through introduction to technical analysis-based investment strategies.
To conclude, this thesis stresses the importance of technical analysis in supporting investment decision-making among people with no educational and professional background and experience in stock investments. This study shows the potential of technical analysis in investment analysis, its ease of learning for individuals without investment experience, and its ability to improve stock market participation rates in the EU.