EconStor >
Rutgers University >
Department of Economics, Rutgers University >
Working Papers, Department of Economics, Rutgers University >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/23191
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorMizrach, Bruceen_US
dc.contributor.authorZhang Weerts, Susanen_US
dc.date.accessioned2009-01-29T15:49:27Z-
dc.date.available2009-01-29T15:49:27Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/23191-
dc.description.abstractWe analyze the trading activity in an Internet chat room with approximately 1,300 participants. Traders make posts in real time about their activities. We find these traders are more skilled than retail investors analyzed in other studies. 55% make profits after transaction costs, and they earn $153 per trade. Traders hold their winners 25% longer than their losers. They have statistically significant alphas of 0.41% per day after controlling for the Fama-French factors and momentum. 38% of profits persist in the next year. Traders improve their skill over time, earning an extra $189 per month for each year of trading experience. They also gain expertise in trading particular stocks. Traders who raise their Herfindahl index by 0.1 raise their profitability by $46 per trade. 42% trade both long and short, with equal success rates, and almost double the profit per trade when short.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesWorking papers / Rutgers University, Department of Economics 2004,12en_US
dc.subject.jelG20en_US
dc.subject.jelG14en_US
dc.subject.ddc330en_US
dc.subject.keywordbehavioral financeen_US
dc.subject.keywordday tradingen_US
dc.subject.keywordfamiliarity biasen_US
dc.subject.keyworddisposition effecten_US
dc.subject.keywordexpertsen_US
dc.subject.stwWertpapierhandelen_US
dc.subject.stwInterneten_US
dc.subject.stwAnlageverhaltenen_US
dc.subject.stwVereinigte Staatenen_US
dc.titleExperts Online : An Analysis of Trading Activity in a Public Internet Chat Roomen_US
dc.typeWorking Paperen_US
dc.identifier.ppn389549258en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Working Papers, Department of Economics, Rutgers University

Files in This Item:
File Description SizeFormat
2004-12.pdf164.78 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.