RT Journal Article
SR Electronic
T1 Do Losses Linger?
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 75
OP 83
DO 10.3905/jpm.2007.690608
VO 33
IS 4
A1 Ryan Garvey
A1 Anthony Murphy
A1 Fei Wu
YR 2007
UL https://pm-research.com/content/33/4/75.abstract
AB How might professional stock traders be influenced by their recent trading performance? Results here show that, in aggregate, when traders incur morning losses, their desire to recover before the close of trading prompts more aggressive trading in the afternoon. This behavior is consistent with behavior underlying the disposition effect. An analysis of individual trading performance reveals that traders who are more influenced by their earlier trading losses perform far more poorly than those who are less influenced.TOPICS: Risk management, statistical methods, portfolio theory