{"id":2001421,"date":"2014-08-21T10:13:46","date_gmt":"2014-08-21T04:43:46","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2001421"},"modified":"2014-09-09T11:53:18","modified_gmt":"2014-09-09T06:23:18","slug":"superstitious-traders-lose-money","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2014\/08\/21\/superstitious-traders-lose-money\/","title":{"rendered":"Do Superstitious Traders Lose Money?"},"content":{"rendered":"<p>Found an interesting paper (scribd embed below) where the authors hypothesize that superstition may be a symptom of a general cognitive disability in making financial decisions.<\/p>\n<p>The authors constructed a &#8220;superstition index&#8221; and bucketed traders based on their trading activity in the Taiwan Futures Exchange. They found that the superstitious individuals (the top-quintile of the superstition index) under-perform their non-superstitious counterparts (the bottom-quintile of the superstition index) by 1.6 basis points within a trading day. The under-performance widens to 2.4 basis points for one day and 6.3 basis points for five days after the transactions.<\/p>\n<p><em>Here&#8217;s an odd titbit: Did you know that India\u2019s Independence Day falls a day after Pakistan\u2019s because astrologers in India insisted that August 14, 1947, was an inauspicious day to become independent?<\/em> <\/p>\n<p><iframe loading=\"lazy\" class=\"scribd_iframe_embed\" src=\"https:\/\/www.scribd.com\/embeds\/237374071\/content\" data-aspect-ratio=\"0.7729220222793488\" scrolling=\"no\" id=\"237374071\" width=\"1000\" height=\"1000\" frameborder=\"0\"><\/iframe><script type=\"text\/javascript\">          (function() { var scribd = document.createElement(\"script\"); scribd.type = \"text\/javascript\"; scribd.async = true; scribd.src = \"https:\/\/www.scribd.com\/javascripts\/embed_code\/inject.js\"; var s = document.getElementsByTagName(\"script\")[0]; s.parentNode.insertBefore(scribd, s); })()        <\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Found an interesting paper (scribd embed below) where the authors hypothesize that superstition may be a symptom of a general cognitive disability in making financial decisions. The authors constructed a &#8220;superstition index&#8221; and bucketed traders based on their trading activity in the Taiwan Futures Exchange. They found that the superstitious individuals (the top-quintile of the &hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471,9],"tags":[3251],"class_list":["post-2001421","post","type-post","status-publish","format-standard","hentry","category-investing-insight","category-your-money","tag-behavioral-finance","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2001421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2001421"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2001421\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2001421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2001421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2001421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}