Trading Behavior Study Sam Used the Survey

Trading Behavior Study

Sam used the Survey Method of Correlation to perform the study between the two variables of emotional responses and trading performance for the first hypothesis and emotional stable introverts and new experiences for the second hypothesis. (Cherry). The correlation method is used to look for relationships between variables and uses different underlying methods, such as the survey method. Sam used surveys to conduct his study after he had researched the problem of the company losing money when traders got emotional over the market changes.

Purposiveness is research conducted for a purpose. (Hallmarks of Scientific Research). The goal of Sam's research was to determine if personality and emotions played a role on trading performance. Testability is based on testable hypothesis developed after careful study of the problems involved. It is logically developed hypothesis to determine if the data supports the hypothesis. The first hypothesis is testable because it is based on traders getting emotional and making mistakes that cost money. The testability with the second hypothesis is questionable because of the way the study was conducted. The participants were not specifically introverted. Objectivity is the findings should be factual, data based, and free from bias. The conclusions should be drawn based on the factual findings. Sam's study showed objectivity in the sense the data was statistically analyzed to determine if it supported the hypothesis.

Rigor is the carefulness, scrupulousness, and degree of exactness. The study question involved both personality and emotional reactivity on financial performance of the day traders. The way the study was conducted, it did not really test the second hypothesis where personality was concerned. There was no specific group of introverts that was studied. Surveys are not considered to be exact because the participants may not give truthful answers. They may be embarrassed by some of the questions or try to impress the surveyor. The second questionnaire only measured the participants' emotional state and trading performance for that one day. It would have had contained more rigor if it was done over several days.

The way that Sam conducted the study can give some information about whether the emotional state of the trader plays a role on the trading performance, but it is really inconclusive. In order to know whether it really played a role, more study should be done. Surveys are cheap to perform and take less time, but they do not have a lot of rigor with them. Sam's study was worthwhile because it does show that the emotional state of the traders can have a bearing on the trading performance.

Deductive reasoning involves a hierarchy of statements or truths that start with a limited number of simple statements used to build more complex statements. (Deductive vs. Inductive Reasoning). Inductive reasoning is the opposite. It involves trying to create general principles by starting with many specific incidences. Sam started with the question of the emotions of the traders playing a role on trading performance, deductive. He then takes the data from the interviews and research to determine the hypothesis, inductive.