Supporting Fundamental Analysis for Investment Beginners based on Investment Behavior Model

Abstract

The objective of this study is to support fundamental analysis for novice investors. To reduce the risk of losing investments when trading stocks, investors estimate company trends by analyzing news articles and stock market trends. This is called fundamental analysis. Experienced investors have sufficient knowledge to understand the relationship between social trends in news articles and a company’s circumstances, and they can conduct such analyses efficiently. However, for beginner investors, the fundamental analysis would be challenging because they have insufficient knowledge. To support such beginners to conduct fundamental analysis, the behavioral differences between experienced investors and beginner investors are observed in this study. Subsequently, a behavior model is developed and a system to support fundamental analysis based on the model is presented.