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Get Just How Much Do Individual Investors Lose

Peking University and National Chengchi University Terrance Odean Haas School of Business, University of California Individual investor trading results in systematic and economically large losses. Using a complete trading history of all investors in Taiwan, we document that the aggregate portfolio of individuals suffers an annual performance penalty of 3.8 percentage points. Individual investor losses are equivalent to 2.2% of Taiwan s gross domestic product or 2.8% of the total personal inco.

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