International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

DETERMINING THE PERFORMANCE OF INDIVIDUAL INVESTORS: THE PREDICTIVE ROLES of DEMOGRAPHIC VARIABLES and TRADING STRATEGIES
Hakan Özerol, Selin Metin Camgöz, Prof. Dr. Mehmet Baha Karan, Prof. Dr. Azize Ergeneli

Abstract
Revealing more about the psychological components of outstanding trading performance is of great interest for researchers. Thus, this study aimed investigate adaptive and maladaptive effects of certain demographic variables (age, gender, education and marital status) and trading strategies (portfolio value, turnover ratio, investment period, consulting advice, number of stocks in the portfolio, percentage of stock investment)on trading performance of individual investors. We analyzed a data set consisting of position statements and trading activities of 60 real individual investors, who actively trade above a certain amount of portfolio size and examined the actual portfolios of those investors through a 6 year period within 1996-2001. The findings suggest that in general investors who have less amounts of portfolio value and turnover rates, have tendency to outperform the market and thus exhibit superior performance. Moreover, the study revealed that the investors who are outperforming the market are the ones with highly educated, relying on the recommendations of experts and women in gender.

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