Fairchild, Richard J.
[VerfasserIn]
;
Hinvest, Neal
[Sonstige Person, Familie und Körperschaft];
Alsharman, Muhamed
[Sonstige Person, Familie und Körperschaft]
Warning
: Trading Can Be Hazardous to Your Wealth! (Just Watch Out for Bears!)
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 8, 2016 erstellt
Beschreibung:
In this paper, we conduct a quantitative, qualitative and neuro-economic experiment investigating the effects of risk-preferences and emotions on investors' trading strategies and performance. The focus of our experiment is a computerised simulated trading game, where investors decide, on a tick-by-tick basis, how much of their wealth to allocate to risk-free cash and/or risky shares (in each period, they can buy or sell shares, or hold their position). Overall, the trading game represents a bear market. Our results demonstrate that risk-aversion and emotions may be detrimental to trading performance in a bear market, and that an optimal level of each may exist