Monday Mornings: Individual Investor Trading on Days of the Week and Times Within a Day

Journal of Behavioral and Experimental Finance, Vol. 22, pp. 105-115

34 Pages Posted: 12 Mar 2019 Last revised: 5 Jan 2020

See all articles by Daniel W. Richards

Daniel W. Richards

York University - Faculty of Liberal Arts & Professional Studies

Gizelle Willows

University of Cape Town (UCT), Faculty of Commerce, Graduate School of Business, Students

Date Written: November 15, 2018

Abstract

Individual investors’ demand for trading activity will vary over time according to their availability and desire to trade. Academic research has primarily investigated market wide trading activity, showing low trading activity on Mondays and high activity at the start and end of each day. It remains unknown whether individual investors’ trading behavior mimics these market patterns. Instead research on individual investors shows that they overtrade in general and are less likely to trade losses. We research trading activity for 7 200 UK investors, finding these investors actually prefer trading on Mondays and trade in a W-shaped intraday pattern. Further investigation revealed that investors increased their selling of losses on Monday mornings, suggesting investors utilise spare time to process difficult trading decisions.

Keywords: Monday, W-Shape, Disposition Effect, Trading Frequency, Day of the Week

JEL Classification: G02, G11

Suggested Citation

Richards, Daniel and Willows, Gizelle, Monday Mornings: Individual Investor Trading on Days of the Week and Times Within a Day (November 15, 2018). Journal of Behavioral and Experimental Finance, Vol. 22, pp. 105-115, Available at SSRN: https://ssrn.com/abstract=3337648 or http://dx.doi.org/10.2139/ssrn.3337648

Daniel Richards (Contact Author)

York University - Faculty of Liberal Arts & Professional Studies ( email )

Toronto, Ontario M3J 1P3
Canada

Gizelle Willows

University of Cape Town (UCT), Faculty of Commerce, Graduate School of Business, Students ( email )

Cape Town, Western Cape
South Africa

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