A Non-random Walk down the Main Street: Impact of Price Trends on Trading Decisions of Individual Investors


We analyze the impact of price trends on trading decisions of more than 40, 000 households with accounts at a major discount brokerage house. Buying and selling decisions of investors in our sample are influenced by short-term (less than 3 months) price trends. By comparing the observed distributions of average trend before buys and average trend before… (More)


12 Figures and Tables