Behavioral Biases Influencing the Decision Making of Portfolio Managers of Capital Securities and Traders in Morocco

Behavioral finance is a new discipline that has emerged to explain the anomalies in the financial markets (ex: the succession of speculative bubbles and stock market crashes). It is based on two assumptions namely the irrationality of investors and limit arbitration. Behavioral finance is based on prospect theory and the psychological biases. In this paper we will present first the behavioral finance and its state of research. Secondly, we will present the results of the survey that was conducted with a sample composed of managers of equity securities portfolios exercising in the management companies in Morocco and Moroccan traders and which deals with psychological biase that affect their decisions the most. The results showed that capital portfolio managers and Moroccan traders are influenced by psychological biases in their decision-making.