The role of behavioral finance in the preference of fundamental and technical analysis in investment decisions of generations

This thesis examines the preferences for fundamental versus technical analysis in the investment decisions of Generations X, Y, and Z through the lens of behavioral finance. The central research problem is to determine how psychological biases influence each generation's choice of analytical methods. The study aims to compare generational attitudes toward fundamental and technical analysis using structured scales and to identify the impact of prevailing tendencies within behavioral finance models. A 30-item questionnaire was administered to a sample of 508 investors drawn from Borsa İstanbul and the Forex market, and the resulting data were analyzed in SPSS via ANOVA, correlation, and regression techniques. The findings reveal statistically significant generational differences both in the preference for fundamental versus technical analysis and across behavioral finance dimensions. Correlation analysis indicated a weak positive association between representativeness bias and a preference for technical analysis, while self-attribution and momentum biases exhibited weak negative relationships with technical analysis preference. In conclusion, generation-specific psychological tendencies markedly shape the choice of analytical methods. Generation Z is characterized by stronger representativeness and overconfidence biases, Generation X by pronounced self-attribution bias, and Generation Y by moderate positioning across the measured biases.