Download or read book The Correlated Trading and Investment Performance of Individual Investors written by Weiyu Kuo and published by . This book was released on 2018 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We find that individual investors tend to trade in the same direction as other individual investors in the same broker branch. The more pronounced an individual investor's herding behavior, the worse she performs in her investments. One explanation that herding investors underperform is the poor market timing of their trades. We find that limit orders from those who herd more have a longer time-to-execution and time-to-cancellation, indicating that these orders face a fierce competition to execute and tend to become stale after submissions. Finally, we find that individual investors learn from their past experience and herd less in the future.

Download or read book Correlated Trading and Location written by Lei Feng and published by . This book was released on 2004 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyses the correlated trading behavior of stock market investors. We begin by documenting that the trades of individuals are significantly correlated (contemporaneously). This correlation increases dramatically if we condition on location. Investors who live near a firm's headquarters react in a similar manner to releases of public information. At the same time, investors who live far from the firm behave very differently from those who live nearby. We are able to make this identification by exploiting a unique feature of individual brokerage accounts in the People's Republic of China (PRC). Our data allow us to know exactly where an investor is at the time he or she places a trade (i.e., at which brokerage branch office). Since branch offices may be many kilometers apart, we are able to identify groups of investors who have the ability to talk amongst themselves and groups of investors who are not in contact with one another. This is a natural experiment with a laboratory-like design: if individual investors are influenced by others directly around them (a form of herd behavior) we should be able to detect it. Group-psychology, however, does not appear to be a predominant factor. Rather, the correlation of buys/sells within a geographic region (yet, across isolated branch offices) is highly significant at a weekly, and even daily, frequency.

Download or read book Retail Investor Sentiment and Behavior written by Matthias Burghardt and published by Springer Science & Business Media. This book was released on 2011-03-16 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a unique data set consisting of more than 36.5 million submitted retail investor orders over the course of five years, Matthias Burghardt constructs an innovative retail investor sentiment index. He shows that retail investors’ trading decisions are correlated, that retail investors are contrarians, and that a profitable trading strategy can be based on these aggregated sentiment measures.

Download or read book The Changing Role of the Individual Investor written by M. E. Blume and published by John Wiley & Sons. This book was released on 1978-09-26 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: "A Twentieth Century Fund report.""A Wiley-Interscience publication." Includes bibliographical references and index.

Download or read book Managed Trading written by Jack D. Schwager and published by John Wiley & Sons. This book was released on 1996-09-06 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: An in-depth investigation into the increasingly popular investment: managed futures—written by one of the world's leading authorities "Jack Schwager has written the definitive book on managed futures investing. It is exhaustive in coverage, and the analysis is exceptionally rigorous. The writing is refreshingly candid and sure to provoke discussion on many important topics in the managed futures industry. This book should be required reading for anyone considering investing in managed futures." —Scott Irwin Professor, The Ohio State University "Jack continues to be both an educator and a portfolio manager. Managed Trading is a wonderful book and much needed in the industry. I consider it required reading for investors and financial industry professionals. Finally, a road map which outlines and explores investment issues succinctly." —M. Elaine Crocker President, Moore Capital Management, Inc. "This book is a 'must-read' for anyone thinking of investing in managed futures. Schwager combines the best of academic research on managed futures investments with his own practitioner experience to provide a comprehensive and insightful analysis of the managed futures industry." —Franklin R. Edwards Arthur F. Burns, Professor, Finance and Economics Columbia Business School "The futures markets will continue to grow worldwide. You should read Jack Schwager whether you are contemplating such investments or are already investing, or even if you just want to understand what is happening." —Jim Rogers Author, Investment Biker "Schwager puts managed futures in its proper perspective as a portfolio investment, providing the reader a complete and enlightening tour of the managed futures world. His writing style makes for easy reading and his common sense and good judgment shine through as he surveys the academic literature, linking the practical and the theoretical in evaluating these investments. New investors and old hands alike will find this a 'must buy and hold' book." —Mark J. Powers President, Powers & Dubin Asset Allocation and Management Co. Editor, The Journal of Futures Markets

Download or read book Individual Investor Trading Around Earnings Announcements written by Zhijuan Chen and published by . This book was released on 2013 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies whether individual investors have information advantage before earnings announcements on an emerging market using a unique data set of TWSE. Consistent with existing research on American market, it is surprising that pre-event individual investor trading is also positively correlated with stock returns on and after earnings announcements dates in Taiwan. However, the sign of correlation between individual investor trading and stock return around earnings announcements shows weak evidence of noise trading rather than information advantage, which is opposite to that of American stock market.

Download or read book Price Based Investment Strategies written by Adam Zaremba and published by Springer. This book was released on 2018-07-25 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: This compelling book examines the price-based revolution in investing, showing how research over recent decades has reinvented technical analysis. The authors discuss the major groups of price-based strategies, considering their theoretical motivation, individual and combined implementation, and back-tested results when applied to investment across country stock markets. Containing a comprehensive sample of performance data, taken from 24 major developed markets around the world and ranging over the last 25 years, the authors construct practical portfolios and display their performance—ensuring the book is not only academically rigorous, but practically applicable too. This is a highly useful volume that will be of relevance to researchers and students working in the field of price-based investing, as well as individual investors, fund pickers, market analysts, fund managers, pension fund consultants, hedge fund portfolio managers, endowment chief investment officers, futures traders, and family office investors.

Download or read book Beyond the Random Walk written by Vijay Singal and published by Financial Management Association Survey and Synthesis Series. This book was released on 2006 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an efficient market, all stocks should be valued at a price that is consistent with available information. But as financial expert Singal points out, there are circumstances under which certain stocks sell at a price higher or lower than the right price. Here he discusses ten such anomalous prices and shows how investors might--or might not--be able to exploit these situations for profit.

Download or read book Tensile Trading written by Gatis N. Roze and published by John Wiley & Sons. This book was released on 2016-03-21 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: A detailed 10-stage roadmap for investors to achieve stock market mastery with their own consistently profitable, high-probability investment system Tensile Trading provides a complete, step-by-step roadmap for investors of all levels, and coaches them on how best to organize the routines and strategies necessary to identify the market's strongest trading opportunities. History is proof that true mastery of the market begins with basic money management protocols, asset protection policies, and organized analysis techniques. With these crucial foundations in place, you can embrace a proven investment methodology, execute an effective trading plan, and develop a reliable system for profitable investing. Consistent, long-run investing success is a result of well-defined goals, carefully-constructed routines and an accurate understanding of the psychological challenges that all investors face. Set yourself up for success by implementing prudent money management and asset protection strategies Build a personalized Asset Allocation Profile—your own personalized investment methodology Construct a properly diversified portfolio using tools and techniques tailored for the modern market Learn to take control of your "Investor Self," limiting the impact of mental hurdles and emotional baggage Supercharge your financial analysis by employing proven routines and strategies A clear and proven approach easily tailored to fit your specific investing style, Tensile Trading distills the vastness of the financial markets into ten essential stages. It is designed to provide a comprehensive structure to your financial management efforts—helping you make smarter investment decisions, trade more efficiently, and consistently earn greater returns.

Download or read book The Aggregate Behaviour of Individual Investors written by Andrew Jackson and published by . This book was released on 2004 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Behavioural models generally require that the investment decisions of irrational investors aggregate in a systematic way. Using a unique Australian dataset of individual investor trades I investigate the plausibility of this assumption. I find that aggregate individual investor trades do indeed exhibit strong systematic patterns, including negative feedback trading and substantial persistence. In addition the weekly cross-sectional net trades of a large number of independent retail brokerage firms are contemporaneously correlated to a remarkable extent. Thus the aggregation assumption appears plausible.However I do not find that the net trades of retail investors consistently predict future returns in a negative fashion. In fact over the period 1991-2002, the net trades of full-service brokerage clients actually positively forecast future short-term market and cross-sectional returns. While small investors do act in a highly systematic fashion, their actions may not, at least in the short run, be classed as irrational.

Download or read book Essays on the Trading Behavior of Mutual Fund Managers written by Gjergji Cici and published by . This book was released on 2004 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Investors Trading Activity written by Dimitrios Kourditis and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Research studies (such as Kiyilar and Acar, 2009) have supported that investors act in irrational ways in some of their investment decisions, and financial models have failed to explain the real investors' behaviour. Investors' trading activity is influenced by personality traits and psychological biases (overconfidence, risk tolerance, self-monitoring, and social influence) and is also affected by mood. The aim of the thesis is to confirm these assumptions by developing and testing a model (using SEM analysis) which would incorporate and examine all of them simultaneously, as it actually happens in real life. The research population includes 345 Greek investors, including individuals' as w~rt' 'as professional' investors who work in various investment companies located all over the country. The data collection included two surveys. The first survey investigated psychological biases and personality traits to find if they correlate with stock trading performance, whereas the second survey examined the psychological predisposition to find whether mood affects stock trading performance. The results have verified that these psychological biases, personality traits and mood, influence investors' trading performance, frequency and volume, providing a complete research model. Another objective of this study was to understand the profile of Greek investors and test if there are differences among them as far as stock trading behaviour (performance, volume and frequency) is concerned. Cluster analysis (three-cluster solution) identified three investors' profiles, the low, moderate and high investor profile, and revealed that high profile investors (with the higher scores on the psychological biases and personality traits) trade high volumes of stocks, make transactions more frequently and earn higher stock profits compared to investors belonging to the other two profiles. A comparative analysis between professionals and individuals has shown that professional investors have higher performance than individuals as far as stock trading is concerned. The results have also shown that professional investors score high on the psychological biases and personality traits examined. The second stage of the study has required iterative data using questions that depict psychological predisposition in a dynamic way. The cluster analysis of 1 Non-professionals 2 Portfolio analysts and stockbrokers 1 the second data set has identified and compared different mood status highlighting differences among groups as far as their mood status and their stock trading performance is concerned. This study has provided evidence supporting the significance of some subjective factors, such as personality traits, psychological biases and emotions in investors' trading activity. The findings have shown that investors who have specific characteristics such as overconfidence, high self-monitoring, risk intolerance, positive mood and sociability are probably better on stock trading performance. ~'A This thesis could enable individual investors and inv;stment advisors, to construct a framework of the profile that contributes to high stock trading performance (a stock trading performance guide). Therefore, investors could possibly ensure the stock trading performance, to the extent that this depends on their profile. Moreover, the study contributes to the field providing a complete and verified research model concerning investors' trading behaviour. Additionally, a contribution of this study is the extensive literature review in the field of behavioural finance which provides a better understanding of behavioural factors and a framework for academics, researchers, individual and professional investors. Keywords: Behavioural Finance; Trading Behaviour; Trading Activity; Model Analysis. JEL Classification: C30, D14, Gll, 016.

Download or read book The Research Driven Investor written by Timothy Hayes and published by McGraw-Hill Companies. This book was released on 2001 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: The editor of "Investment Strategy" shows how individual investors can access institutional-quality tools, data, and indicators and consistently beat the market. Hayes presents walk-through examples of a wide variety of investment models based on more than 100 years of stock market data and research from Ned Davis Research to achieve top results. 120 illustrations. 60 tables.

Download or read book The Successful Investor Today written by Larry E. Swedroe and published by Macmillan + ORM. This book was released on 2007-04-01 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt: What does it take to achieve superior performance and become a successful investor? Rather than great stock pricing or market timing skills, it is far better for you to understand how the markets work and how to make them work best for you. Larry E. Swedroe argues that the right strategy never changes, no matter whether the bull is stampeding or the bear has emerged from hibernation. The Successful Investor Today was written during one of the greatest bear markets of the post-World War II era--a bear market that was a result of the inevitable bursting of the technology-led bubble of the late 1990s (what Federal Reserve Chairman Alan Greenspan called "irrational exuberance"). Although millions of investors unnecessarily incurred trillions of dollars in losses, neither this bubble, nor the ensuing devastating losses, were anything new. Despite all the horrible investment experiences that have been reported, those investors who followed the fourteen simple truths outlined in this book--including the building of globally diversified portfolios-did not suffer the devastating losses experienced by many others. The fourteen simple truths withstand the tests of logic and time in the way the stock market really works, rather than the way Wall Street and the media would have you believe it works. Since it is generally held that those who fail to plan, plan to fail, an investor must begin with an investment plan. Your plan should be tailored to conform to your unique ability, willingness, and need to take risk. In The Successful Investor Today, you will learn how to build, write, implement, and manage your investment plan over time. This book will help you become a better and more informed investor, and it will help you achieve your financial goals by gradually increasing your wealth. Apart from offering an up-to-date winning strategy, The Successful Investor Today presents an efficient and proven way to avoid the most common--and costly--mistakes investors continue to make.

Download or read book CNBC 24 7 Trading written by Barbara Rockefeller and published by John Wiley & Sons. This book was released on 2002-02-28 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Marshall McLuhan said, 'We have become a global village,' CNBC has helped lead the way in creating a global village for the financial markets. Readers will finish CNBC 24/7 Trading feeling smarter about the markets and really understanding how important it is to be in the information flow." -Mary Meeker, Managing Director, Morgan Stanley Dean Witter "CNBC 24/7 Trading unlocks the mystery of how individual investors can invest and trade everywhere all the time. This book will become the investment bible that levels the playing field between Wall Street and Main Street." -Robert J. Froehlich, Vice Chairman, Kemper Funds Group Managing Director, Scudder Kemper Investments "TD Waterhouse has operations in eight countries, so we see that growth in international investing is accelerating. To be successful investing around the globe, investors need both information and insight. CNBC 24/7 Trading covers what individual investors need to know in a thorough, easy to understand way." -Steve McDonald, CEO, TD Waterhouse From the Foreword "CNBC 24/7 Trading . . . embraces the reality that the markets never stand still . . . this book is a guide to the emerging 24/7 marketplace, a road map to the potential rewards for investors who can grasp that marketplace's opportunities and understand its risks."-Sue Herera "This definitive book on investing in the 24/7 markets provides the comprehensive tools for active investors and market pros alike. Offering information and advice on trading, obtaining research, measuring market volatility, and assessing local market risk, no smart investor should venture without it." -Linda R. Killian, CFA, Principal, Renaissance Capital

Download or read book Cracking the Emerging Markets Enigma written by G. Andrew Karolyi and published by Oxford University Press, USA. This book was released on 2015 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cracking the Emerging Markets Enigma outlines a rigorous, comprehensive, and practical framework for evaluating the opportunities and, more importantly, the risks of investing in emerging markets. Built on a foundation of sound research on foreign direct and portfolio capital flows, Andrew Karolyi's proposed system of evaluation incorporates multiple dimensions of the potential risks faced by prospective investors in an empirically coherent framework.

Download or read book The Informational Role of Individual Investors in Stock Pricing written by Hung-Ling Chen and published by . This book was released on 2014 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a unique data set of complete trade records, we find that large individual investors are successful at picking stocks. Large individual investors' correlated trades not only can move synchronous stock prices but also can positively predict future returns. More importantly, large individual investors tend to trade before major earnings announcements and large price changes, suggesting that they are able to exploit value-relevant information. In contrast to large individual investors, small retail investors' correlated trades are inversely associated with synchronous and future stock returns, indicating that small retail investors are uninformed and naïve. The differential information content between large individual and small retail investors highlights the need to classify individual investors according to their investment amount when examining their role in stock pricing.