Economics, Econometrics and Finance
4 years ago

Gender, loss aversion, and sophistication drive tendency to sell too soon.

1 view
Finance research letters
The anatomy of the disposition effect: Which factors are most important?
Yongkil Ahn

Paper Summary

The study looked at the trading habits of over 76,000 regular investors to figure out why people tend to sell their winning stocks too soon and hold onto their losing ones. They found that being male, being afraid of losing money, and having more experience in investing are the main reasons behind this behavior.

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