Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The role of financial technology (FinTech) in controlling emotions and improving trading discipline of Forex and cryptocurrency traders

Document Type : Original Article

Authors
1 Assistant Professor, Finance and Accounting Department, Iranian Electronic Higher Education Institute, Tehran, Iran.
2 Master's student in Financial Engineering and Risk Management, Iranian Electronic Higher Education Institute, Tehran, Iran.
3 PhD student in Information Technology Management, Hamedan Branch, Islamic Azad University, Hamedan, Iran.
Abstract
Trading in financial markets is associated with a high failure rate, which the research literature traces to psychological factors and lack of trading discipline rather than technical knowledge. While technological solutions (FinTech) have been proposed as a tool to reduce human errors, their empirical impact on the psychological dimensions of traders has been less measured. The main objective of this study was to quantitatively and statistically examine this relationship. This study used a descriptive-correlation method to assess the role of FinTech tools in improving emotional control and trading discipline. Data were collected using a questionnaire from a sample of 100 traders active in the Forex and digital currency markets. The results of the structural equation modeling (SEM) analysis showed that the use of FinTech tools has a positive and significant relationship with increased emotional control and improved trading discipline. These findings provide empirical evidence that fintech can act as an external “behavioral anchor” to help traders stick to their strategies by structuring the decision-making process and providing objective feedback, provided that it is used on the basis of a valid trading strategy. The innovation of this research lies in providing quantitative evidence for the link between behavioral finance theoretical foundations and technological solutions, filling an existing research gap by testing an empirical model.
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