In today’s digital era, financial markets have become highly accessible through mobile trading apps and social media platforms. While this accessibility has created new opportunities for young investors, it has also exposed them to psychological biases that significantly influence decision-making. Herding behaviour is one such bias, where investment decisions are often driven by social media influencers, trends, viral content or peer influence rather than rational evaluation of risk and return. Meanwhile, overconfidence bias leads young investors to overestimate their financial knowledge and forecasting ability, which often results in excessive trading, inadequate risk assessment and, ultimately, financial losses. This issue becomes even more critical due to limited financial literacy among young Pakistanis. There is an urgent need to strengthen financial education and promote awareness campaigns focused on responsible investing and critical decision-making.
Rimsha Rafique Ahmed Panhwar
Sukkur
