Overconfident investors in financial markets risk wealth and performance.
The study looked at how people's overconfidence affects their trading in a financial market. They found that overconfident investors tend to trade too much, which can be risky for their wealth. The researchers tested 376 participants and measured their overconfidence using a confidence interval test. Participants traded with virtual agents or other participants in different market setups. The data collected showed how individuals behaved in this experimental environment.