Vol. 2 No. Vol. 2, Issue: 10, December, 1870-1886 (2025): Relationship between Social-Media Financial Influencers, Speculative Trading Behaviour, and Risk Perception among First-Time Equity Investors

Abstract

This study investigates the influence of the social-media financial influencers on the speculative trading behaviour and risk perception of first-time equity investors. As more people are looking to online sources for investment advice, like YouTube, Instagram, Twitter, and LinkedIn, financial influencers are emerging as a trusted source for financial information for rookie investors. The study is an exploratory research design, using secondary data from peer reviewed journals, books and industry reports and uses thematic analysis to find key patterns. The results confirm that investor engagement is significantly higher when they start to encounter financial influencer content frequently, which in turn leads to more speculative investor behaviour and cognitive biases such as overconfidence and fear of missing out (FOMO). The online influence of finance personalities further limits the amount of independent verification of investment information, making it easier to make risky financial choices. The study demonstrates that social media can help people access financial information, but relying too heavily on content created by influencers can be detrimental to making rational investment choices. The results underscore the need to foster financial literacy, critical thinking, and regulatory supervision to encourage prudent investment practices.

Keywords: Social-media financial influencers, Speculative trading behaviour, Risk perception, First-time equity investors, financial literacy.