Do Individual Investors Consciously Speculate on Reversals? Evidence from Leveraged Warrant Trading

Do Individual Investors Learn from Their Trading Experience?

After analyzing retail investors’ stock trades for potential learning behavior, we present evidence that individual investors learn from their trading experience. Initially, we question whether investors’ previous forecasting ability (inferred from prior purchases’ subsequent risk-adjusted performance) affects their future trade profitability and activity. Indeed, as an investor’s inferred abil...

Why do foreign investors underperform domestic investors in trading activities? Evidence from Indonesia

Foreign investors generally underperform domestic investors in trading activities. This study shows that their inferior performance is attributable to non-initiated orders. Foreign investors actually perform better than domestic investors in initiated orders. In addition, their performance is also mixed when trades are classified depending on who the counterparties are. These mixed performances...

How Do Individual Investors Trade ?

This paper examines how high-frequency trading decisions of individual investors are influenced by past price changes. Specifically, we address the question as to whether decisions to open or close a position are different when investors already hold a position compared to when they don’t. Based on a unique dataset from an electronic foreign exchange trading platform, OANDA FXTrade, we find tha...

The Impact of Mobile Trading Technology on Individual Investors' Trading Behaviors: the "Two-Edged Sword" effect

As the evolvement of financial trading technology with wireless network infrastructure, mobile trading technology has emerged to meet investors’ requirements to access the financial markets regardless of time and place. However, being like a “two-edged sword”, mobile trading technology may affect investors’ irrational trading behaviors negatively. This research investigates both the positive an...

Do Individual Investors Cause Post-earnings Announcement Drift? Direct Evidence from Personal Trades