Trading Is Hazardous to Your Wealth¶
Barber, B. M., & Odean, T. (2000). Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Journal of Finance, 55(2), 773-806.
Cited by¶
1 citation across 1 artifact.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Action Bias
- In financial trading it is the over-trading that reduces retail returns relative to buy-and-hold, because activity feels productive.
This sourceShows that the households that trade most earn 11.4% annually versus a 17.9% market return, evidence that active trading erodes net returns relative to buy-and-hold.
Supported in partVerified against the publisher's abstract
Barber & Odean's abstract backs only the erosion half — heavy-trading households earn 11.4% against a 17.9% market return — and not the attributability mechanism or the pre-committed default-no rule.
“Of 66,465 households with accounts at a large discount broker during 1991 to 1996, those that trade most earn an annual return of 11.4 percent, while the market returns 17.9 percent.”
- In financial trading it is the over-trading that reduces retail returns relative to buy-and-hold, because activity feels productive.
Verification¶
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