Are professional traders too slow to realize their losses?

Financial Analysts Journal

Volumn 60, Issue 4, 2004, Pages 35-43

  Garvey, Ryan ^a   Murphy, Anthony ^b  

^a DUQUESNE UNIVERSITY   (United States)

^b UNIVERSITY COLLEGE DUBLIN   (Ireland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 4344563903     PISSN: 0015198X     EISSN: None     Source Type: Journal    
DOI: 10.2469/faj.v60.n4.2635     Document Type: Review

References (17)

1. Badrinath, S., and Wilbur Lewellen. 1991. "Evidence on Tax-Motivated Securities Trading Behavior." Journal of Finance, vol. 46, no. 1 (March):369-382.
2. Constantinides, George. 1984. "Optimal Stock Trading with Personal Taxes: Implications for Prices and the Abnormal January Returns." Journal of Financial Economics, vol. 13, no. 1 (March):65-69.
3. Coval, Joshua, and Tyler Shumway. 2001. "Do Behavioral Biases Affect Prices?" Working paper, University of Michigan.
4. "Direct Access: The Evolution and Growth Continues." 2001. Company report, Keefe, Bruyette & Woods, vol. 39.
5. Ferris, Stephen, Robert Haugen, and Anil Makhija. 1988. "Predicting Contemporary Volume with Historic Volume at Differential Price Levels: Evidence Supporting the Disposition Effect." Journal of Finance, vol. 43, no. 3 (July):677-697.
6. Goldberg, Daniel, and Angel Lupercio. 2003. "Down, but Not Out: Semi-Pro Traders Endure a Third Straight Down Year." Company report, Bear, Stearns & Company (March): www.rushtrade.com/Press/030303.pdf.
7. Harris, Lawrence. 1988. "Predicting Contemporary Volume with Historic Volume at Differential Price Levels: Evidence Supporting the Disposition Effect: Discussion." Journal of Finance, vol. 43, no. 3 (July):698-699.
8. Heisler, Jeffrey. 1994. "Loss Aversion in a Futures Market: An Empirical Test." Review of Futures Markets, vol. 13, no. 3:793-822.
9. Kahneman, Daniel, and Amos Tversky. 1979. "Prospect Theory: An Analysis of Decisions under Risk." Econometrica, vol. 47, no. 2 (March):263-292.
10. Lakonishok, Josef, and Seymour Smidt. 1986. "Volume for Winners and Losers: Taxation and Other Motives for Stock Trading." Journal of Finance, vol. 41, no. 4 (September):951-974.
11. Locke, Peter, and Steven Mann. 2000. "Do Professional Traders Exhibit Loss Realization Aversion?" Working paper, Texas Christian University.
12. Odean, Terrance. 1998. "Are Investors Reluctant to Realize Their Losses?" Journal of Finance, vol. 53, no. 5 (October): 1775-98.
13. Schlarbaum, Gary, Wilbur Lewellen, and Ronald Lease. 1978. "Realized Returns on Common Stock Investments: The Experience of Individual Investors." Journal of Business, vol. 51, no. 2 (April):299-325.
14. SEC. 2000. "Report of Examinations of Day-Trading Broker-Dealers." Washington, DC: Securities and Exchange Commission.
15. Shapira, Zur, and Itzhak Venezia. 2001. "Patterns of Behavior of Professionally Managed and Independent Investors." Journal of Banking and Finance, vol. 25, no. 8 (August):1573-87.
16. Shefrin, Hersh, and Meir Statman. 1985. "The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence." Journal of Finance, vol. 40, no. 3 (July):777-790.
17. Weber, Martin, and Colin Camerer. 1998. "The Disposition Effect in Securities Trading: An Experimental Analysis." Journal of Economic Behavior and Organization, vol. 33, no. 2 (January):167-184.