become an important topic to all people in any age or gender because people
want more money for their needs. Each of the investor making decision in stock
investment with their own intention. The level of financial literacy also will
affect the young investor decision making in stock investment. Low financial
knowledge might lead investor to suffer loses in investment because they only
aim for increase their wealth even though they do not have enough of the
financial knowledge to deal with the risk. Most of the investor attracted by
the high return from the stock investment without any financial knowledge and
ignore the risk. While investor suffer losses in investment, they will lose
their confident to invest again in the stock investment. This might reduce the
investment intention of the investor.
In accumulation phases, there are many young investors are
just start their work or graduated from college. At this phase, those young
investors normally want to buy a car for their working and next will plan to
buy a house for future. To achieve those goals, young investor will save some
of their net income to reach those goals. This might make the young investor lack
of capital to invest in stock investment. Young investor usually with an
unstable income and they have no good habit in saving their income. They
normally simply spend their income and in the end of the month almost finish
their income. This is one of the factor which is cost of living might affect
young investor decision making in stock investment.
Risk tolerance has become one of the important factors
that might affect young investor decision making in stock investment. Young
investor usually does not know how much risk they can take in stock investment.
When suffering too much risk, they will get panic and sell at the wrong time.
According to (Mohammad , Farid, & Noreha, 2011), it states that
every investor might have different own attitude towards the frequent types of
the shares. It shows that every investor will be affect by other factors while
making decision in stock investment. Young investor always aims for getting a better
return and ignore the risk. This might lead the young investor to suffer losses.
Young investor with high risk tolerance usually can accept the result of losing
their money instead of young investor with low risk tolerance.
on (Malaysia Department of Insolvency, 2018), it states that around
5600 individuals were declared bankrupt which under age 35 in year 2016 and
around 640 individuals were declared bankrupt which under aged 25. This is a
serious problem and prove that those factors will affect young investor
decision making in stock investment. Most of the young investor suffer bankrupt
because of student loan (Ptptn), car loan, housing loan and credit card loan.
Young investor need to paid back too much loan, at the end, those loan will
cause them to bankruptcy.