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Abstract The research aims at examining; at the individual Egyptian investor level; the existence of three psychological biases; namely; overconfidence, disposition effect and representativeness bias; in addition to delineating the effect of these psychological biases on trading frequency, portfolio size, and investment returns. Lastly it investigates the likelihood of co-existence of each pair of the aforementioned psychological biases in the trading records of the investors. Results reveal that; firstly; Egyptian investors display overconfidence, reverse disposition effect, and representativeness bias. Secondly, overconfidence, reverse disposition effect and representativeness bias negatively influence trading frequency. Thirdly, overconfident investors, investors who display reverse disposition effect, and investors who exhibit representativeness bias are inclined to hold small portfolios. Fourth, overconfident investors and investors displaying reverse disposition effect achieve lower investment returns. Fifth, overconfidence and reverse disposition effect are more likely to co-exist in the trading records of individual investors, while overconfidence and representativeness bias; on the one hand; and reverse disposition effect and representativeness bias; on the other; are less likely to co-exist together in the trading records of investors. |