Winners and Losers Among Equity Investors
February 25, 2009 - Individual Investing
Who wins and who loses among equity investors, and why? In the December 2008 version of their paper entitled “Who Win and Who Lose Among Individual Investors?”, Kingsley Fong, David Gallagher and Adrian Lee compare the trading performances of three investor groups, those trading through: (1) institutional brokers; (2) discount retail brokers; and, (3) non-discount retail brokers. They define discount brokers as those offering trading services but no in-house research. They compare performances of these groups based on raw and risk-adjusted trading returns at the close on the trade date and at horizons of 1, 10, 25, 140 and 254 trading days. Using detailed intraday trading records for the Australian stock market spanning February 19, 1990 to December 1, 2005, they conclude that: Keep Reading