Investors' response to online stock trading: a study using Q methodology

Abstract

After the introduction of online trading, some investors adopted it while others stuck to their full- service brokers. This research employed Q-methodology to identify different groups and why they responded differently to the same innovation of online trading. The respondents were 26 adults -- 24 investors and 2 non-investors -- who so1ied a 40-statement Q sample. Analysis revealed four groups -- three factors, or types, with one factor being bipolar. Type I, long-term investors, sought expe1is' advice because they did not feel confident in their own judgment and research skills, but would like to be involved in online trading in the future. Type 2 wanted to invest online for empowerment and fun . Type 3, a bipolar fac tor, had a group that distrusted full- service brokers and wanted to save transaction costs through online trading while capturing gains from daily price fluctuations.