PSYCHOLOGICAL UNDERSTANDING ABOUT MEME STOCK INVESTMENT: WHY INDIVIDUAL INVESTORS IN KOREAN AND US STOCK MARKETS MAKE COSTLY MISTAKES

Many of the meme stocks are trending these days in the international stock market. However, there are many individual investors that experience loss. In these irrational investments there are complicated psychological biases. In this research we are trying to figure out what psychological biases occur during the changes of the meme stock prices. I researched four of the meme stocks from Korea and the United States and observed the changes in prices in trading amounts and found out the heuristic bias that can relate to this research. As a result, there are a lot of heuristic biases that relate to the change of meme stocks and it showed different results from good news and the bad news.  Through this we can find out psychological biases in the trending mean stocks and understand the uncertainty of the meme stocks investment.