Abstract :
The purpose of this study is to determine the influence of competence and overconfidence of individual investor on the stock trading behaviour. This research also using demographics factor as control variable such as gender, age, income and educational background. This study uses a sample of 133 questionnaire which spread out through 24 securities corporations in Surabaya and employs Multiple Regression Analysis to test the hypotheses.
The results reveal that competence and overconfidence significantly affect the investor?s stock trading behaviour. Investor who perceive themselves to be more competence and overconfidence will act on their beliefs, leading to higher trading frequency.
Key words: competence, overconfidence, stock trading behaviour