Understanding market functionality key to trading success, study finds.
The article examines trading data from PredictIt markets to see what strategies lead to financial success. By analyzing individual-level data from Democratic and Republican Iowa Caucuses in 2016, the researchers found that understanding market functionality and trading behavior is more crucial for success than confidence, funding, or information. This suggests that simplifying markets and trading could benefit retail investors and calls for more research on trading efficiency in financial markets.