Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (4396)	6/11/1998 2:29:00 PM
From: Morpher	Read Replies (1) \| Respond to of 12617

That's an interesting study but its results are irrelevant to estimating the daytraders' performance since the most active households they looked at averaged only 24% monthly turnover. Also at the time of the study (1991-1996) daytrading wasn't nearly as popular. Even extending the results to today would be wrong since the only factor of active traders underperformance - the commission costs and the bid/ask spreads, are all significantly lower than they used to be. If anything, when the authors looked at intramonth trades, they found that intramonth trades significantly outperformed the market (0.5% per month, after commission and spread). Those accounted for only 10% of the most active households' trades so their performance wasn't improved by much.