"Campesino Accepts Buyout Offer Of Numbered Bovine
"Zee cheque she better be inna mail, she got to get here by Monday and she got to no make the bouncey bouncey" grunted el Sup-tomandante marcos while hunting for his coffee and pondering efficient techniques for a 100-for-1 share split using scissors and a skillfully adapted Bre-X Minerals certificate."
gsm.ucdavis.edu
"We examine changes in the stock trading behavior and investment
performance of 1,607 investors who switch from phone based to
online trading during the period 1991 to 1996. We compare their
trading and performance to that of 1,607 investors with similar size
accounts who do not trade online. We find that those who switch to
online trading experience unusually strong performance prior to going
online, beating the market by more than two percent annually. After
going online, they trade more actively, more speculatively, and less
profitably than before -- lagging the market by more than three
percent annually. A rational response to lower trading costs,
improved execution speed, greater ease of access, or unusual
liquidity needs does not explain these findings. The increase in trading
and reduction in performance of online investors can be explained by
overconfidence augmented by self-attribution bias, the illusion of
knowledge, and the illusion of control."
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A very pessimistic view of online trading ... one wonders how they picked their participants ... the internet, with all its vast and quickly available information as well as online trading, has changed my returns very much for the better ... brokerage houses certainly make more from me now, but i make more as well .... still, an interesting study ... i've only read it half-way so far .... cheers
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