By and large, whenever individual investors buy or sell a stock they buy and sell the wrong stocks and financial institutions benefit from these mistakes. The cost of having an ‘idea’ is nearly 4% for an individual investor. There is research showing that men have more of these ‘ideas’ than women do, so women are more successful investors than men (on average) because they churn their portfolios less. As Odean and Barber have observed, Individual trading is hazardous to people’s wealth.
1 note
-
khuyi reblogged this from jericsinger
-
jericsinger posted this
