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trading plan

Back testing a trading system

Trading shares is a business like any other and, as with any business, it pays to investigate its financial viability before committing capital. I am often horrified by the conservative thinking that has the average mum and dad committing the family nest egg to a Bricks and Mortar retail business […]

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Are investors reluctant to realise their losses?

By Terrance Odean 1998 Abstract / Introduction: I test the disposition effect, the tendency of investors to hold losing investments too long and sell winning investments too soon, by analyzing trading records for 10,000 accounts at a large discount brokerage house. These investors demonstrate a strong preference for realizing winners […]

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