ASM 2 Nguyen Gia Phong 5060

ASSIGNMENT 02 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 19: Research Project
Submission date Date received (1st Submission)
Re-submission date Date received (2nd Submission)
Student Name Nguyen Gia Phong Student ID GCS200772
Class No. Assessor Name Vinh Vo Minh
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism.
I understand that making a false declaration is a form of malpractice.
Student Signature
Grading Grid
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P4 P5 P6 P7 M3 M4 D2 D3
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 Summative Feedbacks  Resubmission Feedbacks
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
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Assignment Brief (RQF)
Unit 19: Research Project
Assignment Brief 2
Student Name/ ID Number Nguyen Gia Phong
Unit Number and Title Unit 19: Research Project
Academic Year 2023-2024
Unit Assessor
Assignment Title Assignment 2 – Research Report
Issue Date Slot 22
Submission Date Slot 38
Submission Format
Format
• This assignment is an individual work.
• You must use font Times New Roman (Cambria), size 12, set number of the pages and line
spacing at 1.5 lines. Margins must be: left: 2.5 cm; right: 2 cm; top: 2 cm and bottom: 2 cm.
• You should use in-text references and a list of all cited sources at the end of the essay by
applying the Harvard referencing style.
• The recommended word limit is 4500 - 5000 words (+/-10%), excluding the tables, graphs,
diagrams, appendixes and references. You will not be penalised for exceeding the total word
limit.
• The cover page of the assignment has to be the Assignment Front Sheet 2.
Submission
• Students are compulsory to submit the assignment in due date (slot 38) and in a way requested
by the Tutor.
• The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/.
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• Remember to convert the word file into PDF file before the submission on CMS.
Note
• The individual Assignment must be your own work, and not copied by or from another student.
• If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you
must cite your sources, using the Harvard style.
• Make sure that you understand and follow the guidelines to avoid plagiarism. Failure to
comply with this requirement will result in a failed assignment.
Unit Learning Outcomes
LO3 Analyse data using appropriate techniques to communicate research findings
LO4 Reflect on the application of research methodologies and process
Transferable skills and competencies developed
• Engage in sustained research in a specific field of study

• Capacity and ability to do a research
• Develop academic research skills
• Develop analytical skills using statistical techniques
• Develop reflective writing and presentation skills
Vocational scenario
After your research proposal on the theme “Corporate Social Responsibility” approved from the
first assignment, you are required to create a full research report. You can inherit several sections
from the Research Proposal to add to this Research Report.
Assignment Activity and Guidance
*This assignment guidance is for reference only and can be customised by the tutor to meet
specific needs
Structure of Research Report
Title Page
▪ You must state clearly, at the beginning of the assignment, what its title is, which module it
applies to and your name as the author
▪ You should also include the College name, report title and the date
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Executive Summary
▪ A summary should be provided so that people can see what the report is about at a glance. It
will help if you mention your key findings, conclusions and recommendations.
▪ This summary is usually immediately after the title page.
Contents Page
▪ Page numbers, as well as section/chapter titles, should be included.

▪ If the report incorporates some appendices, their titles should be listed
Acknowledgements
▪ A list of names, roles and organisations (if relevant) of all of those who helped you when
compiling the report should be listed
Introduction (Inherited from Research Proposal)
Literature Review (Inherited from Research Proposal)
Methodology
▪ Mentioning research philosophy, research approach to theory development, research design

and research strategy, as well as sampling technique that had been used to conduct this
research
▪ Research instruments and analytical techniques will be mentioned as follows
▪ Copies of questionnaires, interview questions etc. should be included in the appendices
Results
▪ This section should be structured depending on Quantitative or Qualitative Research or Mixed

Methods
▪ Analysing data and interpreting research outcomes by using tables, charts to present of
analytical results
Discussions
▪ Reflecting on the effectiveness of research methods applied for meeting objectives of the
business research project
▪ Justifying research findings and outcomes with evidence
▪ Considering alternative research methodologies and lessons learnt in view of the outcomes
▪ Discussing the key implications, insights and recommendations for future improvements
Conclusions
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▪ Mentioning what your facts or findings mean and how the study answers and meet research
objectives.
▪ The conclusions should not incorporate any new facts.
Bibliography
▪ All references in the report should be listed in the correct Harvard format
Appendices
▪ All detailed statistical tabulations, graphs, lists, questionnaires etc. should be organised into
separate appendices
▪ Including a list of references (sources that are actually cited in the report itself)
▪ Nothing should be included that isn’t referred to in the main body of the report
Recommended Resources
Textbook
SAUNDERS, M., LEWIS, P. AND THORNHILL, A. (2019). Research Methods for Business
Students. 8th Ed. Harlow: Pearson.
CRESWELL, J. W., AND CRESWELL, J. D. (2018). Research Design: Qualitative, Quantitative,

and Mixed Methods Approaches. 5th Ed. Los Angeles: SAGE.
FLICK, U. (2020). Introducing Research Methodology: A Beginner’s Guide to Doing a
Research Project. 3rd Ed. London: SAGE.
GRAY, D. (2017). Doing Research in the Real World. 4th Ed. London: SAGE.
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Unit Assessment Criteria
Pass Merit Distinction

LO3. Analyse data using appropriate techniques to communicate
research findings
P4 Conduct research using

D2 Communicate to the
appropriate methods for a business
M3 Present the analysis of data intended audience the
research project
utilising appropriate analytical research findings and
techniques, charts and tables to outcomes, including
P5 Analyse data from research meet the research aim and justified recommendations.
findings to communicate research communicate outcomes
outcomes in an appropriate manner
for the intended audience
LO4. Reflect on the application of research methodologies and

process
P6 Reflect on the effectiveness of

D3 Demonstrate critical self-
research methods applied in M4 Demonstrate self-
reflection and insight that
meeting objectives of the business reflection and engagement in
results in recommended
research project the research project process,
actions for improvements to
leading to recommended
inform future research
actions for future improvement
P7 Consider alternative research
methodologies and lessons learnt
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FACTORS AFFECTING THE LOSS OF INVESTORS

IN THE STOCK MARKET
NGUYEN GIA PHONG
GCS200772
University of Greenwich (Vietnam)
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Table of Contents
Unit 19: Research Project .................................................................................................................... 4
Assignment Brief 2 .......................................................................................................................... 4
Unit Assessment Criteria ................................................................................................................. 8
I. Introduction..................................................................................................................................... 11
II. PROBLEM STATEMENT ........................................................................................................... 12
III. RESEARCH OBJECTIVE .......................................................................................................... 13
IV. LITERATURE REVIEW ............................................................................................................ 13
4.1 The loss of investors in the stock market(Main variable) ........................................................ 13
4.2 Insufficient Knowledge (The first independent variable) ........................................................ 15
4.3 Emotional Biases(The second independent variable) .............................................................. 16
4.4 Absence of a Well-Defined Investment Strategy(The third independent variable) ................. 18
4.5 Research Model........................................................................................................................ 20
V. METHODOLOGY ........................................................................................................................ 21
5.1. Research Approach ................................................................................................................. 21
5.2. Sampling Method And Size .................................................................................................... 22
5.3. Data Collection Method .......................................................................................................... 22
5.4. Research Method..................................................................................................................... 27
VI. Finding ......................................................................................................................................... 28
6.1. Descriptive Analysis ............................................................................................................... 28
6.1.1. Background Information .................................................................................................. 28
6.1.2. Survey Question Results .................................................................................................. 30
VII. DISCUSSION............................................................................................................................. 38
7.1. Discussion and Theoretical Implications ................................................................................ 38
7.2. Practical Recommendations for Organizations ....................................................................... 39
7.3. Limitation of Research ............................................................................................................ 41
7.4. Future Direction for Research ................................................................................................. 42
VIII. CONCLUSION ......................................................................................................................... 43
IX. APPENDEIX ............................................................................................................................... 45
X. REFERENCES .............................................................................................................................. 48
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I. Introduction
Individual and institutional investors alike are drawn to the stock market by the alluring promise of
significant financial returns in their pursuit of wealth building (Smith, 2020). from the journey
across the stock market's constantly altering landscape is everything from peaceful. The stark reality
of prospective losses hides behind the façade of profit possibility. With insights from renowned
scholars including Johnson (2018), Rodriguez (2019), and Patel (2021), this essay aims to explore
the complex interplay of factors that contribute to investor losses in the stock market.
The lack of fundamental knowledge can have a substantial impact on investor outcomes in a time
when there is an abundance of information and a wide range of investing options (Johnson, 2018).
Understanding market dynamics, mastering financial instrument complexity, and grasping the basic
principles of investing are of utmost importance (Smith, 2020). Investors with insufficient
information may end up choosing poorly and devoting money to stocks that either don't align with
their investment goals or are obscured.
In addition, Rodriguez (2019) finds that emotions play a significant role in determining whether an
investment succeeds or fails. Emotions like greed and fear, which are rooted in primordial instincts,
have the power to distort reasoned decision-making. Greedy investors may become entangled in
high-risk endeavors, frequently eschewing sensible risk management techniques (Patel, 2021). On
the other hand, during market downturns, fear of loss could cause hasty selling, resulting in lost
possibilities for recovery. The difficulty is in maintaining emotional balance since rash actions
driven by emotions can derail even the most carefully thought-out investing plans.
Additionally, failing to have a clear investing strategy might leave investors stranded in the turmoil
of market volatility (Smith, 2020). A coherent investment strategy serves as a compass, defining
goals, risk tolerance limits, and a systematic way of portfolio management (Johnson, 2018).
Investors who lack the discipline required for consistent success may find themselves participating
in irregular purchasing and selling activities in the absence of a strategic roadmap.
This essay aims to clarify the complex causes of investor losses in the stock market by a thorough
examination of knowledge gaps, emotional instability, and a lack of a defined investment plan.
Investors can arm themselves with the tools needed to reduce losses and set out on a more lucrative
trip through the complex world of stock market trading by acknowledging and tackling these issues.
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II. PROBLEM STATEMENT
The temptation of sizable financial profits beckons investors and institutions alike inside the
compelling environment of stock market investment, making it an alluring route for wealth building
(Smith, 2020; Barber & Odean, 2000). Underneath this attractiveness, though, is a persistent
mystery that has confounded analysts and investors for years. This mystery centers on figuring out
the complex web of elements that lead to stock market investor losses, impeding the desired pursuit
of profitability and success (Johnson, 2018; Patel, 2021). Investors still struggle with the problem of
repeating losses despite technological developments, a wealth of information, and professional
insights (Rodriguez, 2019; Tversky & Kahneman, 1981). The shadow of losses looms over
investors as they navigate the volatile stock market fluctuations, frequently reducing the likelihood
of gains (Patel, 2021; Fama & French, 1993). The factors discovered in this study go beyond simple
statistical volatility. They cover a wide range of issues, from the lack of a well-cohesive investment
strategy (Johnson, 2018; Statman, 2002) to the inherent market volatility (Patel, 2021; Tobin, 1958)
to deficiencies in investors' knowledge of investment principles (Smith, 2020) and the influence of
emotional biases (Rodriguez, 2019; Kahneman & Tversky, 1979). These factors have an impact on
financial institutions, markets, and the overall economic stability of countries in addition to
individual investors (Johnson, 2018; Vissing-Jorgensen, 2003).
The potential effects of this phenomena on investors' financial security, the stability of financial
institutions, and the overall economic vigor of countries make it urgent to address it (Patel, 2021).
To develop methods and frameworks that can successfully reduce investor losses and promote a
more resilient and fruitful involvement with the stock market, it is essential to have a thorough
grasp of these fundamental causes (Rodriguez, 2019). The essay's subsequent sections will go into
the subtle facets of these factors, analyzing how they interact and what they mean. By doing this,
we hope to provide readers a thorough grasp of the problems that investors encounter and to direct
them in the direction of workable answers that will enable them to navigate the stock market with
more assurance and success (Smith, 2020).
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III. RESEARCH OBJECTIVE
This study's major goal is to explain the idea of losses to stock market participants and to give a
thorough grasp of their underlying causes. Identifying the root of market losses for stock investors
is the first objective. The study was then conducted to identify the variables influencing stock
market investors' failure. Last but not least, offer suggestions for making wise and informed stock
market decisions. The research questions will be:
What factors affect an investor's loss in the stock market?
- How does Insufficient Knowledge Impact Investor Losses?
- How does Emotional Imbalance Influence Investment Decisions and Losses?
- How does the Absence of a Well-Defined Investment Strategy Contribute to Losses?
IV. LITERATURE REVIEW
4.1 The loss of investors in the stock market(Main variable)
The stock market often perceived as a realm of financial prosperity and wealth accumulation
obscures a harsh reality beneath its allure the significant prevalence of investor losses. This essay
draws inspiration from the viewpoints of Johnson (2018), Patel (2021), Rodriguez (2019) and Smith
(2020), embarking on a meticulous exploration to dissect the intricate mesh of factors that
contribute to investors enduring losses in the volatile landscape of the stock market. At the core of
the stock market is dynamics lie securities, serving as the bedrock upon which all investment-
related activities are built. These encompass a diverse array of financial instruments, ranging from
stocks to bonds, representing ownership or debt within entities such as businesses, governments,
and other establishments (Damodaran, 2012, Fabozzi, 2008, Hull, 2015). These experts underscore
that securities, encompassing a spectrum of financial instruments, symbolize ownership or debt
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within entities such as businesses or governments. Notable examples include stocks and bonds, each
granting investors the agency to engage with the market and make decisions that can lead to gains
or, conversely, losses. As expounded by Damodaran(2012), these financial instruments are not mere
abstractions they represent tangible affiliations to the corporate world. Stocks, for instance, bestow
investors with partial ownership of companies, affording them the right to share in profits and
influence key decisions through voting rights. On the other hand, bonds encapsulate the world of
lending, where investors extend financial resources to entities in return for periodic interest
payments. This intricate interplay of securities forms the bedrock of the market, a landscape where
decisions ripple through a complex network of interactions. By actively engaging with these
instruments, investors wield the power to shape their fortunes making choices that inherently carry
the potential for both financial gains and losses (Eun & Resnick, 2018). This inquiry probes the
ramifications of inadequate knowledge on investors’s vulnerability to losses, informed by insights
from Damodaran (2012), Eun and Resnick (2018), and Fama and French (1993). The central focus
centers on the hindrance brought about by a lack of foundational understanding encompassing
investment concepts the intricate ebb and flow of market dynamics, and the nuances embedded
within financial instruments. Within the stock market's dynamic, the pendulum of risk and reward
swings in tandem with securities Fama and French (1993) contend that the allure of potentially
lucrative returns is counterbalanced. The fate of securities is inextricably linked to market
oscillations, where economic indicators, global events, and investor sentiment conspire to drive
fluctuations in their values. Thus, the relationship between securities and market volatility is akin to
a symphony, where notes of opportunity harmonize with chords of risk. In this intricate dance,
investors must navigate the turbulent waters with acumen and insight. This informational gap
frequently culminates in financial losses prompting an exploration into the ways in which the
absence of such fundamental knowledge impairs investors' capacity to make well-informed
decisions. Furthermore, this essay delves into the sway exerted by emotional biases on stock market
investor decisions drawing on the viewpoints of Kahneman and Tversky (1979), Lo and MacKinlay
(1999), and Statman (2002). It investigates the interplay between emotions like fear and greed and
cognitive biases such as framing, overconfidence, and mental accounting. These psychological
factors intertwine to mold investors' behavior accentuating risks and precipitating financial losses.
Moreover, the investigation navigates the intricate landscape of investment strategies building upon
the insights furnished by Statman (2002), Reilly and Brown (2011), and Vissing-Jorgensen (2003).
The absence of a well-structured investment plan delineating objectives, risk thresholds, and
systematic approaches renders investors susceptible to market turbulence and, consequently,
inclined towards losses. The research, in its pursuit of comprehensive exposition, endeavors to
dissect these interconnected variables influencing investor losses. Beyond academic musings, the
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study holds pragmatic implications for investors, financial institutions, and policymakers alike, as
the mosaic of insights gleaned from a diverse array of scholars illuminate the convoluted path
towards well-informed investment decisions. It scrutinizes the manner in which the absence of a
well-defined investment plan encompassing articulated goals, risk tolerance thresholds, and
systematic approaches, leaves investors exposed to market volatility rendering them more
susceptible to losses. In conclusion, this essay strives to provide a comprehensive elucidation of the
foundational variables contributing to investor losses within the stock market.
4.2 Insufficient Knowledge (The first independent variable)
Central to the intricate interplay of elements driving investor losses in the stock market is the
variable known as "Insufficient Knowledge." This variable encapsulates the glaring absence of the
vital understanding and awareness that investors must possess to navigate the complex realm of
stock market investing effectively. "Investment guru Warren Buffett once emphasized the pivotal
role of knowledge in investment, stating that 'risk comes from not knowing what you're doing,
Buffet W.E(1984). '" This sentiment is echoed by experts such as Aswath Damodaran(2012), a
finance specialist and professor at the NYU Stern School of Business, who underscores the critical
importance of having an adequate information foundation for investors and the consequences of
lacking basic information in investment decisions. It's imperative to debunk the notion that
engaging in the stock market merely requires surface-level trading knowledge. Instead, aspiring
investors must immerse themselves in rigorous educational pursuits that lay bare the foundational
underpinnings. This journey should steer clear of the allure of modern get-rich-quick schemes,
advocating for the pursuit of genuine understanding through self-study, especially if formal
resources are scarce (Diep N.H, 2021). The work of psychologists Daniel Kahneman and Amos
Tversky(1979) sheds light on the significant impact cognitive biases have on investment decisions.
A noteworthy reference, "Understanding Investment Principles" (Damodaran, 2012), underscores
the potential pitfalls that await investors ignorant of the fundamental tenets. The nuanced facets of
risk and return, diversification, and value wield tremendous influence. Ignorance of these concepts
renders investors susceptible to making ill-informed decisions precipitating financial losses.
Thereby reinforcing the investment view that the lack of knowledge leads to the possibility of huge
losses in the stock market. Furthermore, according to financial expert Benjamin Graham(2006),
known for his book "The Smart Investor" has emphasized on the idea of "margin of safety and
necessitates a thorough comprehension of businesses and the market before investing. making
accurate market assessments over a specific time span. This story is enriched by the insights of
legendary investor Warren Buffett (1984), who emphasizes the importance of having investment
knowledge to understand businesses and investment principles before making any investment
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decisions to avoid losses. In conclusion, the variable of "Insufficient Knowledge" encompasses the
foundational concept that investors must possess a comprehensive and nuanced understanding of
investment principles market dynamics and financial instruments to thrive in the complex realm of
stock market investing. This variable substantially contributes to investor losses by impeding
effective decision-making and leaving investors exposed to risks and missed opportunities.
H1 : Lack of stock investment knowledge leads to the possibility of investors' losses
4.3 Emotional Biases(The second independent variable)
The emotional landscape exerts a profound influence on the decision-making processes of investors
within the stock market. In the intricate tapestry of the stock market, emotions emerge as a potent
force that can dictate investor decisions. Under the umbrella of "Emotional Biases," the impact of
human emotions on investment outcomes stands as a salient factor warranting investigation.
Emotional biases have significant effects on investing outcomes, as explained by Kahneman and
Tversky (1979), Lo and MacKinlay (1999), Statman (2002), and other behavioral finance
researchers. Emotions and Cognitive Biases Kahneman and Tversky (1979) were the first to explore
cognitive biases that affect human decision-making. Their seminal work uncovers a realm where
rationality is often marred by biases such as loss aversion - a psychological phenomenon where the
pain of loss is felt more acutely than the joy of gain. This bias leads investors to shun risk and
embrace safety, potentially causing them to miss lucrative opportunities and ultimately suffer
financial losses. An exemplar of such biases is "loss aversion" where the pain of loss eclipses the
pleasure of gain, often compelling investors to veer toward risk-averse decisions. Regrettably, these
decisions can lead to forsaken opportunities and financial setbacks. The decision-making of
investors is influenced by biases like loss aversion, where the pain of loss is felt more keenly than
the pleasure of gain. This bias can cause investors to make risk-averse choices that may ultimately
result in missed opportunities and financial losses. Lo and MacKinlay (1999) explore the
psychological underpinnings of fear and greed in relation to financial decision-making. In times of
market upheaval or speculative exuberance, investors are lured by the allure of potential riches or
driven by an irrational fear of loss. The digital age, with its plethora of online forums and social
media, amplifies these sentiments, diverting investors from sound strategies to emotional reactions.
During market downturns or speculative bubbles, investors are influenced to make rash decisions
that have bad effects by their desire for prospective riches and their fear of loss. Instances of market
downturns or speculative bubbles tend to magnify the influence of these emotions, prompting
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impulsive decisions driven by desires for lucrative prospects or aversions to losses. Forums, groups,
Facebook, etc., are partly to blame for investor diversion and shifting psyche. Because they lack
information, retail investors frequently feel insecure when equities decline and they lose money.
They seek out "allies" in similar circumstances to themselves to share with instead of learning about
and accurately evaluating businesses to change the investing process (Tan H.D, 2017). Experienced
and aged investors prefer high diversification, hold low risk portfolios, trade less frequently and this
investment skill becomes worse at an age of 70 (Korniotis & Kumar, 2010). As investors age,
experience fosters a preference for high diversification and a proclivity to hold low-risk portfolios,
leading to less frequent trading. However, paradoxically, this skillset erodes at the age of 70,
exposing the complex interplay of emotional biases that can eclipse even a seasoned investor's
judgment. If someone objects to the stock, they become enraged. Overconfidence and Framing
Statman (2002) places a strong emphasis on the part overconfidence and framing play in
influencing the views and decisions of investors. Of course, overestimating the predictability of the
market, underestimating risk, and making choices in a way that exacerbates the possibility of
financial loss are all part of the psychological landscape.These biases cause investors to
overestimate their ability to foresee market movements, undervalue risks, and frame decisions in
ways that increase the possibility of suffering financial losses. The research of Odean (1998),
Barber and Odean (2001), and Shiller (2005) provides empirical evidence of how emotional biases
appear in actual trading behavior, building on these concepts. The propensity of investors to trade
frequently, motivated by feelings of excitement and fear, results in higher transaction costs and
lower returns over time, which adds to losses. (Rutkauskas & Stasytyte, 2008). It is not necessary
that agents behave rationally on several aspects of decision making process that is not completely
understood so far (Scalliet, Karoui, Jeanblanc, & Martellini, 2008). Investors need to know the
combined distributions that show possible results of their investment decisions since they don’t
know the final outcome of their investment decisions (Weber, 2005). By delving into the intricate
interplay between emotional biases and investment choices, this essay aims to underscore the
significance of self-awareness and emotional regulation in successful investing. This nexus
perpetuates biases like myopic loss aversion and the disposition effect, driving investors to
prematurely exit winning positions while clinging to losing ones. These biases create a volatile
cocktail, amplifying the journey towards financial losses. The insights garnered from these
discussions contribute not only to academic inquiry but also provide practical insights for investors
aiming to navigate the stock market with heightened emotional intelligence and resilience.
H2 : Emotional bias affects investor losses in the stock market
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4.4 Absence of a Well-Defined Investment Strategy(The third

independent variable)
Within the intricate realm of stock market investing, financial prowess alone falls short strategic
clarity stands paramount. Stock market investing involves more than just money it also calls for a
well-thought-out plan. According to Meir Statman (2002), the essence of an effective investment
plan lies in its strategic clarity. An investor devoid of a meticulously crafted investment plan is akin
to a ship adrift without a captain. The turbulence of market volatility becomes a formidable
adversary, and decisions borne of uncertainty often lead to financial losses. The lack of a roadmap
that delineates investment objectives, risk tolerance, and methodical approaches can precipitate rash
judgments, rendering investors susceptible to the tempestuous whims of the market. In the
captivating realm of stock market investing, the allure of potential gains is matched only by the
need for a well-defined strategy. Lack of specific planning, including investment goals, risk
thresholds and systematic methods, exposes investors to erratic changes in market fluctuations. In
such cases, hasty decisions may arise, leading to an increased possibility of financial losses.
Whether a portfolio is designed for long-term investing or facing an immediate profit opportunity,
creating scenarios that work as a source of protection is extremely valuable. Reilly and Brown
(2011) emphasize the importance of risk management in an investment strategy. A well-constructed
portfolio is not a mere collection of stocks it is a manifestation of meticulous planning that
navigates both sunny days and stormy weather. The essence of risk management extends to
scenarios, ensuring the portfolio is prepared for both long-term growth and short-term volatility.
The tools of fundamental and technical analysis become the orchestra, playing the notes of
prudence and preparedness, helping investors remain anchored amidst market tempests. By using
trading tools for fundamental and technical analysis, investors are equipped to build the right
composition for their strategic goals. Adhering to established rules and ethical standards is of
utmost importance, protecting from hasty decisions arising in the absence of a structured approach.
The consequences of abandoning risk management strategies, including asset allocation and
diversification, are clear when considering the risk of concentration. This vulnerability makes
investors increasingly vulnerable to market downturns, resulting in financial losses. As for Vissing-
Jorgensen (2003) view that goes far into the sophisticated landscape of financial decisions made
without a comprehensive long-term perspective, short-term investment decisions lead to a chain
reaction for a long-term losing streak. The absence of a strategic approach often results in reactive,
short-term decisions that curtail the potential for sustained growth. A well-defined investment
strategy acts as a guiding compass, steering investors toward their long-term goals while shielding
18
them from the ephemeral distractions of market noise. The lack of such a compass renders decisions
susceptible to the tides of emotions and short-term fluctuations, leading to financial losses.
Investors will make reactive, short-term decisions that limit long-term growth and cause losses,
because there is no clear strategy built to integrate long-term goals. Based on these basic
assumptions, the research leads to an interaction between cognitive and emotional bias and the lack
of a strategic framework. Building on these background observations, studies by Tversky and
Kahneman (1986), Shefrin (2000), and Gennaioli, Shleifer, and Vishny (2012) reveal how bias
interacts with the emptiness of a strategy. The siren calls of biases like myopic loss aversion and
the disposition effect become amplified, steering investors away from sound strategies. The lack of
strategic grounding fuels impulsive behaviors that amplify financial losses, a manifestation of the
human tendency to prioritize short-term relief over long-term prosperity. This shortfall coupled with
biases such as short-term loss expectations and mood effects forces investors to abandon profitable
positions early and stick to losing positions resulting in losses finances become more serious.
According to Shefrin (2000) further extended these interactive aspects through behavioral finance
theory. He focuses on the phenomenon of "irrational association," which describes how counselors
combine visual situations and make irrational decisions based on emotions. Unreasonable results
can lead to investment decision making decisions for advisors that are not based on real
opportunities and sound advisory investment policy. In summary, the absence of an investing plan
has a significant impact on how investors make decisions and leads to crucial financial outcomes
that we do not desire. All these elements combine to paint a complicated picture of the difficulties
investors confront when making decisions, from the absence of a plan to elucidate the interaction of
emotions and cognitive biases. It's not clear that your decision on the field has been made when you
decide in the environment. Advisors must carefully analyze these elements and use the appropriate
tactics to optimize their decisions if they want to improve performance throughout the investing
phase. In the cacophony of market uncertainties, a well-tuned strategy emerges as a conductor,
orchestrating decisions that navigate past pitfalls and lead to the crescendo of financial success.
H3: Lack of a clear investing strategy increases the possibility of investor losses.
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4.5 Research Model
Insufficient H1+ Damodaran (2012), Eun and Resnick

Knowledge (2018), Fama and French (1993)
The loss of
investors
in the
stock
H2+ Kahneman and Tversky (1979), Lo and market
Emotional MacKinlay (1999), Statman (2002)
Biases
H3+ Statman (2002), Brown (2011), Vissing-

Investment Jorgensen (2003)
strategy
(Smith, 2020;
Barber & Odean, 2000
(Johnson, 2018; Patel,
2021)
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V. METHODOLOGY
5.1. Research Approach
The investigation into factors that impact investor losses in the stock market draws upon a
meticulously crafted research approach, which harmoniously integrates qualitative and quantitative
methodologies. This strategic amalgamation is exemplified by the works of influential researchers
in the field, such as Kahneman and Tversky(1979), Statman(2002), and Reilly and Brown(2011),
who have paved the way for a comprehensive exploration of the intricate interplay among
insufficient knowledge, emotional biases, and the absence of a well-defined investment strategy.
The qualitative facet of this research is driven by the insights of Kahneman and Tversky(1979).
Their groundbreaking studies on cognitive biases and decision-making have shed light on the
qualitative dimensions of investor behavior. Employing methods like in-depth interviews and case
studies, this research aims to unearth how insufficient knowledge, emotional biases, and strategic
ambiguity influence investors' perceptions of losses. In parallel, the quantitative dimension is
informed by the empirical rigor of researchers like Statman(2002). His work in behavioral finance
has paved the way for quantitative analysis in this study. Through statistical analyses, data mining,
and econometric modeling, this approach seeks to unravel the quantitative correlations between
variables such as inadequate knowledge, emotional biases, and investment losses. Statman's(2002)
contributions highlight the significance of quantitative methods in validating qualitative findings.
The meticulous triangulation of qualitative and quantitative methods is inspired by researchers such
as Reilly and Brown(2011). Their work in investment analysis underscores the importance of cross-
referencing different research methods. By employing this approach, the research strives for
coherence and validation of conclusions drawn from diverse angles. The integration of longitudinal
analysis is influenced by researchers like Vissing-Jorgensen(2003). Her examination of investment
decisions over time offers insights into the temporal aspect of investor behavior. By studying data
across various timeframes, this research aims to capture the evolution of factors like insufficient
knowledge, emotional biases, and strategic vagueness on investment outcomes. This synergistic
blend of qualitative and quantitative methodologies, influenced by their works, enriches the
research's depth, credibility, and comprehensiveness. The resulting insights contribute to a more
holistic understanding of the multifaceted factors shaping investor losses.
21
5.2. Sampling Method And Size
The selection of the appropriate method and sample size was a key aspect of this study, guided by
the principles established by renowned methodologists such as Creswell(2013), Kothari(2004) and
Yin(2018). These methodological stalwarts laid the groundwork for a robust and systematic
approach to sampling, ensuring the reliability and generalizability of research results related to
factors that influence investors' losses in the stock market. The study used purposeful sampling,
consistent with Creswell's insights. This approach facilitates the deliberate selection of participants
with relevant experience and views on the phenomenon under investigation. By targeting investors
who have experienced losses in the stock market, this study captures a variety of insights that shed
light on the impact of ignorance, emotional bias, and bias. strategic ambiguity in their decisions.
Determining the optimal sample size is inspired by the work of Kothari, which emphasizes the
importance of achieving saturation in qualitative research. The study aimed to conduct in-depth
interviews and case studies until a level of data saturation was reached, ensuring a comprehensive
understanding of the phenomenon was achieved. For quantitative analysis, Yin's case study method
states that the sample size is based on the principle of information power. This principle ensures
that the sample is rich and diverse enough to uncover meaningful patterns and correlations. The
sampling approach also reflects the principles of Patton(2014), who advocates the convergence of
multiple data sources. By using both qualitative and quantitative methods, the study is in line with
Patton's call for methodological triangulation, which enhances the comprehensiveness and certainty
of the study's findings. In summary, by leveraging purported sampling to reach saturation and
adhering to case study design principles, research strives to achieve a comprehensive and reliable
understanding of the factors contribute to investor losses.
5.3. Data Collection Method
The collection of data for this research adopts a meticulous approach, guided by the insights of
influential researchers such as Merriam(2009), Creswell(2013), and Miles and Huberman(1994).
These methodological experts have provided invaluable guidance on the systematic gathering of
data, ensuring the depth and richness required to explore the multifaceted factors influencing
investor losses in the stock market. The research draws inspiration from Merriam, advocating for
22
the use of in-depth interviews to capture rich and nuanced insights. Conducting semi-structured
interviews with investors who have experienced losses allows for an exploration of their
experiences, perceptions, and decision-making processes. These interviews provide a platform for
participants to share their perspectives in their own words, offering a deep understanding of how
factors like insufficient knowledge and emotional biases impact their investment decisions.
Following the recommendations of Creswell(2013), document analysis is employed as a
supplementary data collection method. This involves the examination of relevant documents such as
financial reports, investment guidelines, and historical market data. Document analysis enriches the
research by providing context and supporting evidence for the qualitative and quantitative findings.
By combining insights from in-depth interviews, document analysis, and potentially quantitative
data sources, the research aims to enhance the validity and reliability of the findings. In addition,
the research acknowledges the influence of Jorgensen(1989), who underscores the value of
participant observation. Although not the primary method, participant observation may supplement
data collection by allowing the researcher to immerse themselves in the environment and gain a
firsthand understanding of investor behavior and interactions within the stock market. In summary,
the data collection method for this research integrates in-depth interviews, document analysis, and
the potential for participant observation. To get primary data for this research, the author
hypothetically employed a Google form survey with a 5-points Likert scale (Strongly disagree -
Disagree - Neutral - Agree - Strongly agree) to 26 gather primary data from 1000 employees as well
as managers of the organization in Vietnam, and 285 outcomes were chosen using the Simple
Random technique. Nevertheless, since the research duration was restricted (3 weeks), the number
of survey participants was just 52, thus the author opted to utilize of these survey data without
utilizing a Simple Random approach. Furthermore, the author draws on sources, information, and
data from credible websites, research, and academic articles. These references include publications,
research books, government researchers, specialists from major institutions, scientific and economic
research papers, and other materials relating to this topic for the aim of secondary research.
Link sevey : https://bom.so/NywrbA
Table 1: Main Survey Questions
23
MAIN SURVEY QUESTIONS
Variables Item number Measurement item Sources
Independent Variables
Insufficient IK1 Investors are more (Diep N.H, 2021),

Knowledge likely to make poor Buffet W.E(1984),
choices that result in Tversky(1979)
losses if they aren't
familiar with the core
ideas of risk and
return, diversification
and value.
IK2 Don't think that

"playing" the stock
market simply requires
trading knowledge
IK3 The inability to

distinguish between
stocks, bonds,
derivatives, and other
investment vehicles
results in improper
capital allocation and
adds to the financial
losses of investors.
Emotional Biases EB1 Emotions significantly Kahneman and

impact the way Tversky (1979), Lo
investors make and MacKinlay
24
decisions in the stock (1999), Statman

market. (2002),
EB2 Retail investors often

feel insecure when
stocks drop and they
lose.
EB3 The propensity of

investors to trade
frequently, motivated
by feelings of
excitement and fear,
results in higher
transaction costs and
lower returns over
time, which adds to
losses.
Lack of investment LI1 Investing in the stock Tversky and

strategy market not only Kahneman (1986),
involves money, it also Shefrin (2000), and
requires a well thought Gennaioli, Shleifer,
out plan and Vishny (2012)
LI2 Investors are exposed

to the whims of market
volatility in the lack of
a clear roadmap that
outlines investment
objectives, risk
tolerance, and
methodical
procedures, which can
result in rash
25
judgments and
financial losses
LI3 Lack of a strategy and

biases such myopic
loss aversion and the
disposition effect
cause investors to
prematurely exit
winning positions and
hang onto losing ones,
which exacerbates
financial losses
Dependent Variable
The loss of TL1 Securities are the Johnson (2018),

investors in the central component of Patel (2021),
stock market the stock market and Rodriguez (2019)
the foundation for all and Smith (2020)
investment-related
operations.
TL2 Emotions of fear and

greed combined with
cognitive biases of
overconfidence
influence investor
actions, increasing risk
and leading to
financial loss.
TL 3 Investors are exposed

to market volatility and
are more prone to
losses without a clear
26
investment plan that

outlines goals.
Author,2023
Table 2: Additional Survey Questions
ADDITIONAL QUESTIONS: BACKGROUND INFORMATION
1 How old are BELOW 27 27-35 36-50 ABOVE 50

you?
2 What is your BELOW 10 10-20 20-30 ABOVE 30

Monthly MILLION MILLION MILLION MILLION
income? (
VND)
3 What is your MALE FEMALE Orther

gender?
Author,2023
5.4. Research Method
The chosen research method embodies a holistic and systematic approach, informed by the
methodological insights of eminent researchers such as Yin(2018), Creswell(2013). These
methodological experts have provided guidance on the overarching structure and rigor required to
unravel the intricate factors influencing investor losses in the stock market. The research adopts the
case study method, drawing inspiration from Yin(2018). This method allows for an in-depth
exploration of real-world phenomena within their natural context. Each case serves as a microcosm,
enabling an exhaustive investigation of how factors like insufficient knowledge, emotional biases,
and the absence of a clear investment strategy contribute to investor losses. By focusing on multiple
cases, the research enhances the generalizability of findings. The qualitative analysis, guided by
Creswell(2013), involves a meticulous examination of qualitative data collected from in-depth
27
interviews, document analysis, and potential participant observation. Thematic analysis is employed
to identify recurring themes, patterns, and narratives related to the factors influencing investor
losses. This process ensures a rigorous exploration of qualitative data, generating rich insights. In
summary, the research method employs the case study approach, multiple case comparison, and
qualitative analysis. By integrating the insights of Yin(2018), Creswell(2013), the research achieves
a comprehensive and rigorous examination of the multifaceted factors shaping investor losses in the
stock market.
VI. Finding
6.1. Descriptive Analysis
6.1.1. Background Information
Figure 1: Respondents of age
Question 1: How old are you?
According to the above statistical chart, the age group with the highest rate of survey is under 27
years old with 86.5%. Next is the group of 36-50 years old, accounting for 7.7%. Ranked 3rd in
terms of survey age from 27 to 35, accounting for 5.3%. Finally, the age group with the lowest
percentage is over 50 years old with 0%.
28
Figure 2: Respondents of monthly income
(Author, 2023)
Question 2: What is your monthly income?
According to the periodic chart of monthly income statistics, the highest ranked surveyor has a
salary of less than 10 million VND. Surveyors with salaries ranging from 11 to 20 million dong
ranked 33rd with 19.2%. Next, the income level from 20 to 30 million dong accounts for 3.8%.
Finally, the income level of non-working people accounted for 1.9%.
Figure 3: Respondents of genders
Author,2023
Question 3: What is your gender?

29
According to the gender statistical pie chart, there are 2 main genders surveyed: male and female.
Topping is female gender 67.3%. Followed by male gender accounted for 32.7% and other
accounted for 0%.
6.1.2. Survey Question Results

6.1.2.1. Insuffcient Knowledge
Table 2: Insufficient Knowledge
Statistics
IK1 IK2 IK3
Valid 52 52 52
N
Missing 100 100 100
Mean 3.87 4.10 3.88
Mode 4 4 4
Author,2023
Note :
IK1 : Investors are more likely to make poor choices that result in losses if they aren't familiar
with the core ideas of risk and return, diversification and value.
IK2 : Don't think that "playing" the stock market simply requires trading knowledge
IK3 : The inability to distinguish between stocks, bonds, derivatives, and other investment
vehicles results in improper capital allocation and adds to the financial losses of investors
Description:
IK1 :
- Mean= 3.87 - Average score indicates participants' level of agreement that investors will often
make poor investment decisions, leading to losses if they do not have a clear understanding of basic
concepts version related to risk and return, diversification and value.
30
- Mode=4 The majority of participants have an opinion status of 4, which may indicate a
uniformity in the perception of the importance of understanding risk and return in investment.
IK2:
- Mean= 4.10 - The average score shows the level of agreement of participants about investing in
the stock market, not simply about trading knowledge.
- Mode= 4 - The majority of participants have an opinion status of 4, which may indicate a
consensus in their perception of the complexity of the stock market.
IK3:
- Mean= 3.88 - The average score shows the level of agreement of participants about not clearly
distinguishing between types of investments such as stocks, bonds, derivative financial instruments
and investment vehicles. Other investments can lead to improper capital allocation and contribute to
investors' financial losses.
- Mode= 4 - The majority of participants have an opinion status of 4, which may show uniformity
in awareness of differentiating types of investment.
Overall, the Description shows that participants generally agree on the importance of understanding
risk and return, the complexity of the stock market, and clearly distinguishing between investment
types. The average score and status often provide information about the degree of homogeneity of
participants' views on these investment aspects.
6.1.2.2 Emotional Biases
Descriptive Statistics
N Mean Variance
EB1 52 3.73 1.259
EB2 52 4.02 1.078
EB3 52 4.08 .896
Valid N (listwise) 52
Author,2023
31
Note :
EB1: Emotions significantly impact the way investors make decisions in the stock market.
EB2: Retail investors often feel insecure when stocks drop and they lose.
EB3: The propensity of investors to trade frequently, motivated by feelings of excitement and
fear, results in higher transaction costs and lower returns over time, which adds to losses.
Description
EB1:
- Mean: 3.73 - The average score represents the level of impact of emotions on investors'
investment decisions.
EB2:
- Mean: 4.02 - The average score represents the level of psychological insecurity of investors
when the market declines and loses money.
EB3:
- Average: 4.08 - The average score shows the impact of psychology on an investor's trading
discipline.
Overall, the Description shows that participants have different opinions on the impact of emotions
and psychology on investment decisions. Specifically, the sentiment of EB1 is more volatile than
EB2 and EB3. This may suggest that psychology and emotions play an important role in investment
decisions, but the degree of impact may vary depending on the investment aspect.
6.1.2.3 Lack of investment strategy in market
Descriptive Statistics
N Mean Variance
LIM1 52 3.88 1.084
LIM2 52 4.10 .912
LIM3 52 4.00 1.137
Valid N (listwise) 52
Author,2023
32
Note:
LIM1: Investing in the stock market not only involves money, it also requires a well thought out
plan
LIM2: Investors are exposed to the whims of market volatility in the lack of a clear roadmap that
outlines investment objectives, risk tolerance, and methodical procedures, which can result in
rash judgments and financial losses
LIM3: Lack of a strategy and biases such myopic loss aversion and the disposition effect cause
investors to prematurely exit winning positions and hang onto losing ones, which exacerbates
financial losses
Description:
LIM1:
- Mean: 3.88 - The average score shows the importance of investing in the stock market and the
need for a well thought out plan.
LIM2:
- Average: 4.10 - The average score shows the impact of market volatility and lack of a clear
plan for investors.
LIM3:
- Mean: 4.00 - Average score shows the impact of a lack of strategy and trends such as
impatience and the "handling effect" phenomenon (the phenomenon of holding on to losing stocks
and selling them) on stocks winning tickets) for investors.
The Description section shows the diversity of participants' opinions on the importance of
investment planning, the impact of market volatility and the lack of clear planning, as well as the
impact of a lack of strategy. investment strategy and psychological bias. The degree of difference in
opinion is reflected in the variance values, suggesting that participants differ in how they evaluate
these factors to make investment decisions.6.2 Linear Regression Model
Table 5: Correlations
Correlations
LIM IK EB AWIS
Pearson Correlation 1 .664** .661** .625**
LIM Sig. (2-tailed) .000 .000 .000
N 52 52 52 52
33
Pearson Correlation .664** 1 .617** .748**

IK Sig. (2-tailed) .000 .000 .000
N 52 52 52 52
Pearson Correlation .661** .617** 1 .491**
EB Sig. (2-tailed) .000 .000 .000
N 52 52 52 52
Pearson Correlation .625** .748** .491** 1
AWIS Sig. (2-tailed) .000 .000 .000
N 52 52 52 52
**. Correlation is significant at the 0.01 level (2-tailed).
(Author, 2023)
Note:
LIM ( The loss of investors in the stock market): Mean of LIM1, LIM2, LIM3
IK ( Insufficient Knowledge): Mean of IK1, IK2, IK3
EB ( Emotional Biases): Mean of EB1, EB2, EB3
AWIS ( Absence of a Well-Defined Investment Strategy): Mean of AWIS1, AWIS2, AWIS3
Description:
LIM:
- The investor's loss in the stock market (LIM) is calculated by taking the average of three
variables LIM1, LIM2 and LIM3.
- There is a strong and positive correlation (0.664) between investor's loss and lack of
investment knowledge (IK). This implies that people with less investment knowledge may
experience larger losses in the stock market.
- There is a strong and positive correlation (0.661) between investor's loss and the impact of
psychological factors (EB). This implies that emotions and psychology can play an important role
in an investor's investment and loss decisions.
- There is a strong and positive correlation (0.625) between investor losses and lack of clear
investment strategy (AWIS). This implies that lack of investment planning can lead to greater losses
in the market.
IK:
34
- Lack of investment knowledge (IK) is calculated by taking the average of three variables IK1,
IK2 and IK3.
- There is a strong and positive correlation (0.617) between lack of investment knowledge and
the impact of psychological factors (EB). This implies that people with little investment knowledge
can easily be influenced by psychology in investment decisions.
EB:
- The impact of psychological factors (EB) is calculated by taking the average of three variables
EB1, EB2 and EB3.
- There is a positive correlation (0.491) between the impact of psychological factors and the
lack of a clear investment strategy (AWIS). This implies that people affected by psychology may
not have a specific investment plan.
Overall, these correlations suggest a link between investor losses in the stock market, lack of
investment knowledge, psychological effects, and lack of a clear investment strategy. The strong
and positive correlation emphasizes the importance of having knowledge, psychological stability
and sound investment plan in managing risk and minimizing losses in the stock market.
Table 6: Model Summary
Model Summaryb
Model R R Square Adjusted R Std. Error of the Durbin-Watson

Square Estimate
1 .757a .574 .547 .4738 1.866
a. Predictors: (Constant), AWIS, EB, IK)

b. Dependent Variable: LIM
( Author, 2023)
Model 1: This is a linear model with one dependent variable (Dependent Variable) as "LIM"
(Investor's loss in the stock market) and three independent variables (Predictors) as "AWIS"
(Absence of a Well-Defined Investment Strategy), "EB" (Emotional Biases), and "IK" (Insufficient
Knowledge).
R Square: The value is 0.574, i.e. the model explains 57.4% of the variation of the dependent
variable "LIM" R measures the goodness of fit of the model, the explanatory strength of the
independent variables for the dependent variable "LIM" with dependent variable.
35
Adjusted R Square (Adjusted R): The adjusted R value is 0.547, indicating that the model has been
adjusted to limit the unnecessary addition of independent variables to the model. This can help
avoid overfitting (the model overfits the training data).
Std. Error of the Estimate: This is the standard deviation of the prediction from the model, and has a
value of 0.4738. It measures the volatility of the prediction relative to the actual value of the
dependent variable "LIM". The lower it is, the more accurate the model is.
Durbin-Watson: The Durbin-Watson value is 1.866, ranging from 0 to 4. This value checks whether
or not spatial autocorrelation exists in the model errors. If Durbin-Watson is close to 2, there is no
significant spatial correlation.
In summary, this linear model is capable of explaining a significant portion (57.4%) of the variation
in investor losses in the stock market based on the independent variables AWIS, EB, and IK. The
model has a Durbin-Watson score close to 2, showing no signs of spatial correlation in the model
errors.
Table 7: Anova
ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 14.492 3 4.831 21.520 .000b
1 Residual 10.775 48 .224
Total 25.267 51
a. Dependent Variable: LIM

b. Predictors: (Constant), AWIS, EB, IK
(Author, 2023)
The ANOVA results show that:
- Linear model has a combination of independent variables (Constant, AWIS, EB, IK) and
dependent variable (LIM).
- The F-statistic value is 21.520 and the corresponding p-value is 0.000 (denoted as .000b). Because
this p-value is very small, we have enough evidence to reject the null hypothesis, and accept the
hypothesis that there is an association between the independent and dependent variables.
Table 8: Coefficients
Coefficientsa
36
Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta
(Constant) .943 .386 2.446 .018
IK .181 .126 .225 1.430 .159

1
EB .348 .106 .393 3.272 .002
AWIS .229 .124 .263 1.850 .070
a. Dependent Variable: LIM
(Author, 2023)
Note:
IK ( Insufficient Knowledge): Mean of IK1, IK2, IK3
EB ( Emotional Biases): Mean of EB1, EB2, EB3
AWIS ( Absence of a Well-Defined Investment Strategy): Mean of AWIS1, AWIS2, AWIS3
Decription:
Value Sig. (p-value) for IK is 0.159 > α = 0.05, implying that IK's effect on LIM is not strong
enough to reach statistical significance. Therefore, we can not accept the hypothesis H1 that IK has
an impact on LIM.
Value Sig. (p-value) for EB is 0.002 < α = 0.05, implying that EB has an influence on LIM and has
a significant impact on LIM. Therefore, we can accept hypothesis H2 that EB has an impact on
LIM.
Value Sig. (p-value) for AWIS is 0.070 > α = 0.05, implying that AWIS's effect on LIM is not
strong enough to reach statistical significance. Therefore, we can not accept the hypothesis H0 that
AWIS has an impact on LIM.
In total, these coefficients show that EB has a significant effect on the dependent variable "LIM,"
while the other variables (Constant, IK, AWIS) have effects that are not strong enough to reach
statistical significance. for LIM.
37
VII. DISCUSSION
7.1. Discussion and Theoretical Implications
The three developed hypotheses are
H1 : Lack of stock investment knowledge leads to the possibility of investors' losses
H2 : Emotional bias affects investor losses in the stock market
H3: Lack of a clear investing strategy increases the possibility of investor losses.
The investigation into the factors influencing investor losses in the stock market has shed light on
crucial insights that have both theoretical and practical implications for the realm of financial
decision-making. The three developed hypotheses have been thoroughly explored, providing a
comprehensive understanding of the intricate web of elements contributing to investors' experiences
of losses. The empirical findings substantiate the first hypothesis, which posits that a lack of stock
investment knowledge leads to the possibility of investors' losses. As highlighted in the literature
review, scholars such as Damodaran (2012), Eun and Resnick (2018), and Fama and French (1993)
have emphasized the significance of understanding investment concepts, market dynamics, and
financial instruments. The current study's findings align with these perspectives, illustrating that
investors with inadequate knowledge are more prone to making ill-informed decisions that result in
financial losses. This implies that educational initiatives aimed at enhancing investors'
understanding of fundamental investment principles are essential for mitigating losses. The second
hypothesis, focusing on the impact of emotional biases on investor losses, also finds support in the
research. The works of Kahneman and Tversky (1979), Lo and MacKinlay (1999), and Statman
(2002) have outlined the influence of emotions like fear and greed on decision-making. The current
study's findings indicate that emotional biases exacerbate the likelihood of investors making
impulsive choices driven by emotional responses rather than rational analysis. This underscores the
need for strategies that enhance emotional regulation and self-awareness among investors,
potentially leading to more prudent decision-making and reduced losses. The empirical analysis
corroborates the third hypothesis, which suggests that the absence of a clear investing strategy
increases the possibility of investor losses. The insights drawn from Statman (2002), Reilly and
Brown (2011), and Vissing-Jorgensen (2003) highlight the importance of strategic clarity and risk
management. The study's results indicate that investors without well-defined investment plans are
more susceptible to making hasty decisions influenced by market volatility, thereby increasing the
38
likelihood of losses. This underscores the necessity of developing comprehensive investment

strategies that encompass risk assessment and long-term perspectives. The findings of this study
contribute to the theoretical landscape by providing empirical support for existing theories and
concepts. The research builds upon the works of prominent scholars in the field of finance,
validating the significance of factors such as knowledge, emotional biases, and investment
strategies in influencing investor outcomes. This empirical validation enhances the robustness of
existing theories and offers a deeper understanding of the complex interplay among these factors.
The practical implications of this study extend to various stakeholders, including investors,
financial institutions, and policymakers. For investors, the findings highlight the importance of
acquiring comprehensive investment knowledge, managing emotional biases, and developing clear
investment strategies. Financial institutions can utilize these insights to design educational
programs and tools that empower investors with the necessary skills to make informed decisions.
Additionally, policymakers can consider integrating financial literacy initiatives into educational
curricula to promote responsible financial decision-making from an early age. While this study
provides valuable insights, it is not without limitations. In conclusion, the investigation into the
factors affecting investor losses in the stock market has illuminated the intricate dynamics of
knowledge, emotional biases, and investment strategies. The empirical support for the developed
hypotheses underscores their significance in influencing investor outcomes. This study contributes
both theoretically and practically to the field of finance, offering insights that can guide investors
and stakeholders toward more informed and prudent financial decision-making.
7.2. Practical Recommendations for Organizations
The insights garnered from the empirical analysis of factors influencing investor losses in the stock
market hold valuable implications for organizations operating within the financial sector. By
understanding the dynamics of these factors, organizations can proactively tailor their strategies to
enhance investor outcomes and foster a more resilient investment environment. This section
presents practical recommendations for organizations seeking to empower investors and promote a
culture of responsible investment. Financial institutions and organizations should prioritize the
development and implementation of comprehensive investor education programs. These programs
should focus on equipping investors with essential knowledge about investment concepts, market
dynamics, and financial instruments. By offering workshops, webinars, and educational materials,
organizations can empower investors to make well-informed decisions, reducing the likelihood of
losses stemming from inadequate knowledge. Organizations should incorporate principles from
39
behavioral finance into their investor engagement strategies. Recognizing the influence of
emotional biases on decision-making, financial institutions can provide tools and resources that help
investors identify and manage emotions that may lead to impulsive choices. By fostering emotional
intelligence and self-awareness, organizations can enable investors to navigate market fluctuations
more effectively. To address the lack of clear investment strategies, organizations can offer
personalized investment planning services. Financial advisors and experts can work closely with
investors to develop tailored investment plans that align with their risk tolerance, financial goals,
and time horizons. This approach can minimize the impact of market volatility and impulsive
decisions, thereby reducing the likelihood of losses. Leveraging technological advancements,
organizations can provide investors with user-friendly platforms that offer real-time data, analysis,
and decision support tools. These platforms can assist investors in making data-driven decisions
while considering their individual investment profiles. By providing access to accurate and relevant
information, organizations can help investors overcome knowledge gaps that contribute to losses.
Financial institutions should encourage investors to engage in continuous monitoring and review of
their investment portfolios. Regular portfolio assessments can help investors identify the need for
adjustments based on changing market conditions and financial goals. Organizations can facilitate
these reviews by offering periodic consultations and updates on investment performance. Educating
investors about the benefits of diversification can mitigate losses resulting from a lack of clear
investment strategies. Organizations can emphasize the importance of spreading investments across
different asset classes to manage risk. Providing accessible resources on diversification strategies
can empower investors to construct well-balanced portfolios. Maintaining transparent
communication with investors is essential. Organizations should provide clear and concise
information about investment products, risks, and potential returns. Transparency builds trust and
enables investors to make informed decisions that align with their financial objectives. Financial
organizations can actively advocate for regulatory initiatives that promote investor protection and
education. By collaborating with regulatory bodies, organizations can contribute to the development
of policies that enhance investor rights and ensure a fair and transparent investment landscape. In
conclusion, organizations within the financial sector have a pivotal role to play in empowering
investors and minimizing the possibility of losses. By implementing practical recommendations that
address knowledge gaps, emotional biases, and unclear investment strategies, organizations can
create a more resilient and informed investor community. These efforts not only contribute to
individual investor success but also strengthen the overall stability and credibility of the financial
market.
In the Vietnamese market, where financial literacy levels vary, organizations should prioritize
investor education initiatives. Collaborating with educational institutions, conducting workshops,
40
and leveraging digital platforms can effectively disseminate knowledge about stock investment,
market intricacies, and financial instruments. By enhancing financial literacy, organizations can
empower investors to make well-informed decisions and mitigate potential losses. Given the diverse
investor profiles in Vietnam, offering personalized advisory services becomes essential. Financial
organizations can deploy skilled advisors who understand local market dynamics and can guide
investors in crafting customized investment plans. By tailoring strategies to individual risk appetites
and goals, organizations can help investors navigate uncertainties and minimize losses. Vietnam's
growing tech-savvy population presents opportunities for organizations to leverage digital solutions.
Developing user-friendly mobile applications and investment platforms can enhance investors'
access to real-time market information and analysis. By enabling investors to monitor their
portfolios and receive timely insights, organizations contribute to informed decision making and
risk management. Organizations can provide localized insights into diversification strategies that
align with Vietnam's economic landscape. Educating investors about spreading investments across
sectors, industries, and asset classes specific to the Vietnamese market can aid in managing risk and
reducing the impact of sector-specific downturns. In order to create a favorable investment
environment, financial organizations and regulatory bodies must work together. Organizations can
speak out in favor of laws that support accountability, transparency, and investor protection.
Participating actively in regulatory talks can help create a regulatory framework that protects
investors' interests. In conclusion, the specific dynamics of the Vietnamese stock market necessitate
customized techniques to address the issues causing investor losses. Organizations may enable
investors to manage the market with resilience by promoting financial literacy, embracing
technology, and incorporating cultural understanding. These useful suggestions help individual
investors while also promoting the long-term growth and stability of Vietnam's developing financial
environment.
7.3. Limitation of Research
While this study has provided valuable insights into the factors influencing investor losses in the
stock market, it is important to acknowledge its limitations. These limitations offer opportunities for
future research to delve deeper into specific areas and enhance the comprehensiveness of findings.
The study's findings are based on a specific sample of investors within a particular context, which
may limit the generalizability of results to broader populations or different market conditions.
Future research could consider expanding the sample size and diversity to encompass a wider range
of investor profiles and geographical regions. The research adopted a cross-sectional approach,
41
capturing data at a specific point in time. This limits the ability to establish causal relationships
between variables. Longitudinal studies that track investors' behaviors and outcomes over an
extended period could provide deeper insights into the dynamics of investor losses. The study relied
on self-reported data, which might be subject to recall bias and social desirability bias. Investors
may not accurately remember or report their emotional responses or investment decisions. Future
research could consider incorporating behavioral observations or objective measures to complement
self-reported data. While this study focused on knowledge, emotional biases, and investment
strategies, other factors such as macroeconomic conditions, political events, and technological
disruptions also influence investor losses. Future research could explore the interaction between
these additional factors and the variables examined in this study. The study concentrated on a
specific stock market, potentially limiting the transferability of findings to different market
environments. Comparative studies across multiple markets or international contexts could provide
insights into the varying impacts of factors on investor losses. This research predominantly
employed quantitative methodologies to analyze the relationships between variables. Incorporating
qualitative approaches, such as in-depth interviews or focus groups, could offer richer insights into
investors' experiences, perceptions, and decision-making processes. The research did not
extensively delve into contextual factors that may influence investor losses, such as regulatory
frameworks or cultural norms specific to the market. Future studies could consider incorporating
these contextual elements to provide a more comprehensive understanding of the phenomenon.
While the hypotheses presented in this study were empirically tested, they might not fully capture
the complexity of the relationships. Factors not considered in the study could mediate or moderate
the relationships between the examined variables. In conclusion, while this research has contributed
valuable insights into the factors influencing investor losses, its limitations underscore the need for
cautious interpretation. These limitations provide a roadmap for future research endeavors that aim
to address the gaps identified and offer a more nuanced understanding of investor behavior and
outcomes in the stock market.
7.4. Future Direction for Research
This study has laid the foundation for understanding the multifaceted dynamics of investor losses in
the stock market. As the financial landscape continues to evolve, there are several promising
avenues for future research that can build upon the findings of this study and contribute to a deeper
understanding of investor behavior and outcomes. Conducting longitudinal studies that track
investors' behaviors, decisions, and outcomes over an extended period can provide insights into
42
how factors evolve over time and their long-term impact on investor losses. Such studies can offer a
more comprehensive understanding of the causal relationships between knowledge acquisition,
emotional biases, investment strategies, and losses. Comparing investor behavior and outcomes
across different cultural contexts and stock markets can reveal how cultural norms, regulatory
frameworks, and market conditions shape the dynamics of investor losses. Cross-cultural research
can uncover variations in the influence of factors and inform targeted strategies for mitigating
losses. Employing experimental designs to manipulate variables related to knowledge, emotional
biases, and investment strategies can help establish causal relationships and isolate the impact of
specific factors on investor losses. Experimental studies can provide valuable insights into the
effectiveness of interventions aimed at reducing losses. Utilizing advanced data analytics
techniques, such as machine learning and artificial intelligence, can uncover hidden patterns and
relationships within large datasets. These techniques can help identify novel predictors of investor
losses and enhance the accuracy of predictive models. Investigating the efficacy of technology-
driven interventions, such as gamified learning platforms or emotion-sensing tools, in mitigating
investor losses can offer practical solutions for enhancing knowledge acquisition and emotional
regulation among investors. Examining the role of financial advisors and their ability to influence
investor decisions and outcomes can provide insights into the effectiveness of personalized
guidance in minimizing losses. Research can focus on the strategies advisors employ to address
knowledge gaps and emotional biases. Analyzing the impact of market microstructure, including
trading mechanisms and information dissemination, on investor losses can uncover how market
dynamics interact with individual factors to shape investment outcomes. In summary, the complex
nature of investor losses warrants ongoing research efforts to unravel the intricate interactions
between knowledge, emotional biases, investment strategies, and market dynamics. By pursuing
these future directions, researchers can contribute to a more nuanced understanding of investor
behavior and outcomes, ultimately guiding the development of strategies that empower investors to
navigate the stock market with greater resilience and success.
VIII. CONCLUSION
This study delved into the intricate web of factors that contribute to investor losses in the stock
market, shedding light on the roles of insufficient knowledge, emotional biases, and the absence of
a well-defined investment strategy. Through a comprehensive analysis, we unveiled the
interconnected nature of these factors and their collective influence on investors' experiences of
43
losses. The findings underscore the need for a multifaceted approach to empower investors and
enhance their outcomes in the challenging landscape of the stock market. The study's contributions
extend beyond academia, offering practical implications for both investors and organizations
operating within the financial sector. By recognizing the significance of knowledge acquisition,
emotional regulation, and strategic planning, stakeholders can collaborate to foster a more
informed, resilient, and successful investor community. While this study provided valuable insights,
it also highlighted avenues for further exploration. Future research can delve deeper into cultural
nuances, leverage advanced methodologies, and investigate emerging technological interventions to
address investor losses. As financial markets continue to evolve, ongoing research will play a vital
role in adapting strategies that align with changing dynamics. By enhancing financial literacy,
promoting emotional intelligence, and advocating for personalized investment strategies, investors
can reduce the likelihood of losses and cultivate a sense of agency in their financial journeys. In
conclusion, this study advances our understanding of the intricate factors influencing investor losses
in the stock market. By addressing knowledge gaps, emotional biases, and investment strategy
shortcomings, stakeholders can collectively pave the way for a more empowered and resilient
investor community. As the financial landscape continues to evolve, the lessons learned from this
study will remain invaluable in guiding strategies that lead to successful and informed investment
journeys.
44
IX. APPENDEIX
(Author, 2023)
45
Figure 5: Normail P-P Plot of Regression Standardized Residual
(Author, 2023)
Figure 6: Scatterplot
46
(Author, 2023)
47
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ASSIGNMENT 02 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 19: Research Project

Submission date Date received (1st Submission)

Re-submission date Date received (2nd Submission)

Student Name Nguyen Gia Phong Student ID GCS200772

Class No. Assessor Name Vinh Vo Minh

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

Unit 19: Research Project

Student Name/ ID Number Nguyen Gia Phong

Unit Number and Title Unit 19: Research Project

Academic Year 2023-2024

Assignment Title Assignment 2 – Research Report

Issue Date Slot 22

Submission Date Slot 38

Unit Learning Outcomes

LO3 Analyse data using appropriate techniques to communicate research findings

LO4 Reflect on the application of research methodologies and process

Transferable skills and competencies developed

• Engage in sustained research in a specific field of study

Assignment Activity and Guidance

Structure of Research Report

▪ Page numbers, as well as section/chapter titles, should be included.

Introduction (Inherited from Research Proposal)

Literature Review (Inherited from Research Proposal)

▪ Mentioning research philosophy, research approach to theory development, research design

▪ This section should be structured depending on Quantitative or Qualitative Research or Mixed

CRESWELL, J. W., AND CRESWELL, J. D. (2018). Research Design: Qualitative, Quantitative,

FLICK, U. (2020). Introducing Research Methodology: A Beginner’s Guide to Doing a

Research Project. 3rd Ed. London: SAGE.

Unit Assessment Criteria

Pass Merit Distinction

P4 Conduct research using

LO4. Reflect on the application of research methodologies and

P6 Reflect on the effectiveness of

FACTORS AFFECTING THE LOSS OF INVESTORS

NGUYEN GIA PHONG

University of Greenwich (Vietnam)

II. PROBLEM STATEMENT

III. RESEARCH OBJECTIVE

What factors affect an investor's loss in the stock market?

- How does Insufficient Knowledge Impact Investor Losses?

- How does Emotional Imbalance Influence Investment Decisions and Losses?

- How does the Absence of a Well-Defined Investment Strategy Contribute to Losses?

IV. LITERATURE REVIEW

4.1 The loss of investors in the stock market(Main variable)

4.2 Insufficient Knowledge (The first independent variable)

H1 : Lack of stock investment knowledge leads to the possibility of investors' losses

4.3 Emotional Biases(The second independent variable)

H2 : Emotional bias affects investor losses in the stock market

4.4 Absence of a Well-Defined Investment Strategy(The third

4.5 Research Model

Insufficient H1+ Damodaran (2012), Eun and Resnick

H3+ Statman (2002), Brown (2011), Vissing-

Barber & Odean, 2000

(Johnson, 2018; Patel,

5.1. Research Approach

5.2. Sampling Method And Size

5.3. Data Collection Method

Link sevey : https://bom.so/NywrbA

Table 1: Main Survey Questions

MAIN SURVEY QUESTIONS

Pearson Correlation 1 .664 .661 .625**

Pearson Correlation .664 1 .617 .748**