Analysis of irrational investors' behaviors in terms of behavioral finance: A questionnaire survey on individual investors in TR-63 Region

"Traditional Finance Theories", which is based on the opinion that investors behave rationally in their decisions, have failed to explain irrational behaviors identified following the studies conducted. To explain these irrational behaviors, a new field named "Behavioral Finance" has emerged following the studies conducted by different disciplines such as Psychology and Sociology. Behavioral Finance analyzes individual investors' decisions and their effect on financial issues in case rationality is limited. It also deals with how efficient human behaviors are while making a decision on investment. This study's main focus is to analyze psychological factors and behavioral inclinations that affect the behaviors of individual investors benefiting from various demographic characteristics. This research has been conducted using face-to-face questionnaire technique to 525 people chosen randomly with random sampling method from different occupations based on individual investors in TR-63 region. The data obtained have been evaluated using Pearson chi-squared test. Eventually, it has been observed that individual investors are under the influence of psychological prejudices and have behavioral inclinations to a great extent, so they cannot behave rationally. Even though the result of this study shows parallelism with the results of the similar studies conducted in this field, it stands for being an exemplary and reliable source in the field of behavioral finance.