Professional trader discipline and trade disposition

By Peter R. Locke, Steven C. Mann. 2005

365 citations recorded by the source corpus.

Subfields: Accounting, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/90598d6513e50dec74fce36d282fee0a93e933bf

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Citations in the corpus

Corporate Social Responsibility: Is it Rewarded by the Corporate Bond Market? A Critical Note (2010, background): “First, private investors trade on the basis of less and lower quality of information and often act more irrationally than institutional investors (Barber and Odean, 2000; Locke and Mann, 2005), which is why they are probably much less able to take a very complex issue such as CSR into account effici”
Are Investors Really Reluctant to Realize their Losses? Trading Responses to Past Returns and the Disposition Effect (2012, neutral): “, Ferris, Haugen, and Makhija (1988), Odean (1998), Weber and Camerer (1998), Grinblatt and Keloharju (2000), Shapira and Venezia (2001), Locke and Mann (2005), Kumar (2009), Kaustia (2010a), and Jin and Scherbina (2011). 6 Several papers have assumed or tested the idea that the disposition effect r”
Looking for Someone to Blame: Delegation, Cognitive Dissonance, and the Disposition Effect (2014, neutral): “Odean (1998) argues against private information driving the effect in stocks, noting that disposition effect trading in stocks reduces returns.”
The disposition effect and investor experience (2013, background): “…there is financial counseling (Taylor, 2000; Shapira and Venezia, 2001), and it is heightened for inexperienced investors (Grinblatt and Keloharju, 2001; Coval and Shumway, 2005; Feng and Seasholes, 2005; Locke and Mann, 2005; Dhar and Zhu, 2006), though that is still unsettled (Chen et al., 2007).”
Institutional Investors, Past Performance, and Dynamic Loss Aversion (2009, background): “Perhaps reflecting an increased tendency for the disposition effect amongst younger and less experienced funds (see Odean (1998)), the coefficient estimates on NEGPNL indicate that younger and less experienced funds also cut risk less after a loss, though this effect is not statistically significant”
Do Investor Sophistication and Trading Experience Eliminate Behavioral Biases in Financial Markets (2005, neutral): “…studies include: Shefrin and Statman (1985); Heisler (1994); Odean (1998); Weber and Camerer (1998); Shapira and Venezia (2001); Grinblatt and Keloharju (2001); Genesove and Mayer (2001); Coval and Shumway (2005); Garvey and Murphy (2004); Locke and Mann (2005); and Locke and Onayev (2005).”
Information cascades: Evidence from a field experiment with financial market professionals (2005, background): “Locke and Mann (2005) argue that financial market research that ignores the effect of professional expertise is likely to be received passively because " ordinary " individuals, as opposed to professional traders, are too far removed from the price discovery process.”
Prospect Theory and the Disposition Effect (2008, background): “Secondly, risk seeking in the loss domain has received mixed empirical support: Myagkov and Plott (1997) demonstrate that it diminishes when the experiment is repeated, and Laury and Holt (2005) find no support for risk seeking when using moderate monetary payoffs instead of hypothetical payoffs.”
The Worst, the Best, Ignoring All the Rest: The Rank Effect and Trading Behavior (2015, background): “…to sell a position as it becomes a larger gain, or a larger 11 Settings include individual investors (Odean 1998; Feng and Seasholes 2005; Kaustia 2010), mutual fund managers (Wermers 2003; Frazzini 2006), futures traders (Locke and Mann 2005) and prediction markets (Hartzmark and Solomon 2012).”