Do All Individual Investors Lose by Trading?
52 Pages Posted: 25 Feb 2010 Last revised: 21 Mar 2010
Date Written: February 18, 2010
We document that not all individual investors who participate in stock market pay a tremendous performance penalty for active trading from a unique dataset including the complete transaction history and account information of all shareholders in Chinese Mainland. During our sample period, for the limited investment tools and less sophisticated knowledge and technology, the less wealthy individuals incur economically large losses. Finally, we give the international comparisons of existing studies and market situations, presenting that the trading performance patterns of individuals and institutions are similar in the world whether the market situations are different or not.
Keywords: Behavioral Finance, Account Information, Trading Strategy, Disposition Effect
JEL Classification: G10, G1, G28, C22
Suggested Citation: Suggested Citation