Fear and greed in financial markets
Subtitle: a clinical study of day-traders
By: Andrew W. Lo, Dmitry V. Repin, Brett N. Steenbarger.
Contributors: Steenbarger, Brett N.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11243; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11243.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Day trading (Securities) -- Psychological aspects.
Description: "We investigate several possible links between psychological factors and trading performance in a sample of 80 anonymous day-traders.  Using daily emotional-state surveys over a five-week period as well as personality inventory surveys, we construct measures of personality traits and emotional states for each subject and correlate these measures with daily normalized profits-and-losses records.  We find that subjects whose emotional reaction to monetary gains and losses was more intense on both the positive and negative side exhibited significantly worse trading performance.  Psychological traits derived from a standardized personality inventory survey do not reveal any specific "trader personality profile", raising the possibility that trading skills may not necessarily be innate, and that different personality types may be able to perform trading functions equally well after proper instruction and practice"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 4/8/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.