Psychological and effective symptoms among Pompian’s behavioral investor types in Tehran stock Exchange

Pompian’s theory is one of the new approaches to behavioral finance that divides investors into four types: preserver, accumulator, follower and independent. This study investigates psychological symptoms of Tehran Stock Exchange investors in Sanandaj based on the orientations of Pompian’s theory. The method is casual-comparative and 430 stock exchange investors were recruited. The sample was divided into four investing orientations using the Pompin’s Behavioral investor types Questionnaire and compared with 163 non-stock group members as a control group in the psychological symptoms such depression, anxiety, and stress and in positive and negative affect. The results show that preservers and accumulators experience more depression, anxiety, and stress than non-stockholders and independents individuals. The control group have more positive affect than all four groups. Negative affect of independent individuals was less than other groups. Psychological symptoms and high negative affect of stock market investors can have a great impact on their financial decisions and can be decisive in the collapse of financial markets. This impact can be reciprocal: the collapse of financial markets can have devastating psychological effects on preservers, accumulators, and followers and decline their life satisfaction.