Stocks - Cognitive Biases in Individual Investors: Familiarity Bias |
- Cognitive Biases in Individual Investors: Familiarity Bias
- Why does US dollar & Bond dip and soar up while US stock market soar up and then dip after the news Fed kept the current interest rate?
- Can someone explain what is happening with IMTE? UP (1,595.45%)
- EMA + PMI = 1.8 k% return on INNT?
- What is going on with Walgreens(WBA)?
- SQ Earnings
- What do you guys think of Davita?
- Motley fool
- Fed Announcement
- MTCH
- What biotech sucessfully prlduce a resistant crop recently?
- Snapchat
- DE - Anyone looking at John Deere?
- Why is PEP down right now???
- ScottyStellar's Inside Track- Week 8 Update- a minor loss
- Which cloud service provider is leader in this filed now?
- DCA $YUMC
- Estée Lauder taking a nose dive?
- KLMK dark pulse reverse merger!
- NXTGMS?
- Coil pattern developing on Dow
- Why did AMZN close -$12.58 (-0.80%) today?
| Cognitive Biases in Individual Investors: Familiarity Bias Posted: 02 May 2018 09:20 AM PDT Link to figure. Investors have a strong affinity to buy a stock that they have encountered in the immediate past. Irrespective of whether the stock bought is a popular or an obscure one, if an investor is observed buying it, then it is highly probable (>50%) that she traded in the same stock at least once in the past one year. As mentioned above, the set of familiar stocks, for an investor at a particular time, is defined as the stocks the investor traded in the past one year (except the most recent month). Two other measures of familiarly are used. First, the set of stocks the investor encountered in his last ten trades. Second, the set of last ten unique stocks the investor traded in. The main finding is robust to all these measures of familiarity. If there were no familiarity bias, mechanically this probability( which can be called the benchmark probability) would be quite low (1%-5%). This finding is bases on individual investor transaction data from Finland between 1995-2009. The two probability 1) observed and 2) benchmark when plotted for 225 stocks in Helsinki Exchange makes the argument clearer. The stocks are arranged in descending order of trading volume. So stock#1 is the most traded stock and Stock#225 is the least traded. The orange plot is the benchmark probability and is, as expected, declining as trading volume decreases. The blue plot is the observed probability, which is almost uniformly higher than the benchmark probability, pointing towards a behavioral bias. The finding may be driven due to laziness of investors, when time and effort has been invested in researching one stock she keeps buying the same. But it is like searching for your lost key under the lighted part of the sidewalk (streetlight effect) or the well known familiarity bias. [link] [comments]  |
| Posted: 02 May 2018 01:07 PM PDT If US dollar is going to soar up after the interest rate has been decided to stay, why would it dip right after the news? Why does it just not soar up without the dip? Same for the stock market. Why does it soar up right after the news then dip? Why does it not just dip after the news? I know, in general, if interest rate goes up, companies revenue growth gets hindered which causes the stock market to have a slower growth thus causing people to sell their stocks, on top of the bond going up due to higher interest rate which also causes people to get their money out of stocks and put in the bonds. Therefore, the immediate response to the news, US dollar and bond dipping while stock market going up, makes sense to me. What I dont get is the next phase where the inverse, dollar and bond going up while stock market is dipping, is happening.
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| Can someone explain what is happening with IMTE? UP (1,595.45%) Posted: 02 May 2018 10:38 AM PDT My friend who is super into investing sent me this, I am unsure of why a company would be raising so rapid without any news about it online. [link] [comments]  |
| EMA + PMI = 1.8 k% return on INNT? Posted: 02 May 2018 08:20 AM PDT Backtested a strategy using some mobile app on INNT. My strategy was based on two factors: EMA (1 week) and Services PMI (Actual minus Expected). Backtest was covering period from May, 2017 to May, 2018. I've got 1.82 k% annual compounded return for that period. This is crazy coincidence? or can really combination of some technical indicator and macro economic indicator predict INNT? [link] [comments]  |
| What is going on with Walgreens(WBA)? Posted: 02 May 2018 09:01 AM PDT - Walgreens has met or beaten expectations in 15 consecutive quarters - Amazon announced they were not going to sell drugs to hospitals - Analysts seem to be high on the stock Anyone have any speculation as to why this stock keeps getting crushed? [link] [comments]  |
| Posted: 02 May 2018 09:44 AM PDT |
| What do you guys think of Davita? Posted: 02 May 2018 09:06 AM PDT Biggest dialysis company in an aging country. Horrible history of customer care but seem to be making efforts to fix that. Other sketchy practices on record, but seem too big to fail. https://www.google.com/amp/s/www.nysestocks.review/2018/04/29/review-the-facts-about-stock-davita-inc-dva/amp/ [link] [comments]  |
| Posted: 02 May 2018 06:57 AM PDT Has anyone here subscribed to it? If so, is it worth it? I'm getting emails about a year subscription for 49 bucks, and can opt out after 30 days [link] [comments]  |
| Posted: 02 May 2018 11:02 AM PDT Is a rate hike priced in already or will this be a sell the news event? [link] [comments]  |
| Posted: 02 May 2018 04:37 AM PDT Will it recover this morning or drop more? The debt concerns me. Who thinks it will recover 10%? Who thinks it will dip more? =) [link] [comments]  |
| What biotech sucessfully prlduce a resistant crop recently? Posted: 02 May 2018 02:52 PM PDT I am curious but forgot its name and plan on looking into it. Does anyone remember? [link] [comments]  |
| Posted: 02 May 2018 10:42 AM PDT Snapchat was extremely oversold today. I'm in it for the long run. Bought it at $11 this morning. What are your thoughts? I don't see it disappearing anytime soon. [link] [comments]  |
| DE - Anyone looking at John Deere? Posted: 02 May 2018 04:40 AM PDT The only concerns I see seem to be related trade wars as opposed to financial health/earnings. Since February its down roughly 40 dollars a share (175 to 135). P/E Ratio seems attractive at 18.4. [link] [comments]  |
| Posted: 02 May 2018 09:45 AM PDT So confused with why Pepsi is so much lower than its 52 week high of 122 and after even a pretty good earnings and revenue beat. Its more of a secular stock too which should be helpful with the up and down market this year. Rising interest rates I suppose? [link] [comments]  |
| ScottyStellar's Inside Track- Week 8 Update- a minor loss Posted: 02 May 2018 01:27 PM PDT After 5 straight weeks of beating the market, the market prevails again. We ended up losing about a Big Mac and McFlurry worth of value against the VTI benchmark. Weekly Changes: Solved the spreadsheet Weekly report issue I was having, so all numbers now match up against the total report. Bought: PM at $83.10. Only one share due to not wanting to overinvest in one individual stock- and good thing, as it's down 4% since I bought it. NBEV at $1.95. Also down over 3.5% and might not hang onto this one for long, but I have an affinity to smaller stocks and beverages. HMST at $26.00. Finally, a winner (so far on the week), this one fits the model well with some good insider buying lately, and plan to hang onto it for a while, unless there's a quick early gain. Sold: AAT at $34.15 for a small gain, I only had two shares and took the opportunity of a smaller investment to get into PM after a dip and recent insider purchases. $3.4 profit or 5.3% over a month and a half. VERU at $2.04 for a nice little gain of $18.15 or 19.3%. EPD at $27.13 for a gain of $5.16 or 4.99% All of these sales were at a profit, and all of the stocks have since declined from where I sold them, so my timing must be good (so far). Weekly Stats: Over the past week, our portfolio lost $12.43, or .46% Over the same period, the VTI investment lost $3.54, or .15% This comes to a one-week Loss against the VTI of $8.89 or -.36% of the original $2500. Total Stats: Inside Track's total gain: $176.08 or 7.04% VTI Benchmark: LOSS of $96.49 or **-3.86% This brings us to a Total Gain against Benchmark of $272.57 or 10.9% Thanks for reading, as always comments or stocks to consider are welcome! [link] [comments]  |
| Which cloud service provider is leader in this filed now? Posted: 02 May 2018 04:05 AM PDT As I know AWS by amazon is very famous, but I don't know well this filed. If you know well cloud service provider, please let me know which company is best. [link] [comments]  |
| Posted: 02 May 2018 11:01 AM PDT Yum China Holdings is down 12.5% after disappointing sales from Pizza Hut, although KFC did well. Is this an overreaction of the market or is this is a good moment to buy more $YUMC? [link] [comments]  |
| Estée Lauder taking a nose dive? Posted: 02 May 2018 10:15 AM PDT What's going on with Estée Lauder? They reported such strong earnings but they dropped over 10% last two days. Not much news about anything wrong. What's going on? [link] [comments]  |
| KLMK dark pulse reverse merger! Posted: 02 May 2018 09:50 AM PDT $KLMK / dark pulse reverse merger https://backend.otcmarkets.com/otcapi/company/sec-filings/12721283/content/html https://twitter.com/DarkPulseTech/status/990223825408331776?s=20 [link] [comments]  |
| Posted: 02 May 2018 09:09 AM PDT Does AMC:s The walking dead have enough kick left to make "TWD Our world" a Pokemon Go like success and take the stock back to 10€? Thoughts? [link] [comments]  |
| Coil pattern developing on Dow Posted: 02 May 2018 08:49 AM PDT Anyone notice the coil pattern on the Dow? 6 month chart.. I suspect a big move is coming shortly to which side I don't know [link] [comments]  |
| Why did AMZN close -$12.58 (-0.80%) today? Posted: 02 May 2018 01:48 PM PDT Is there something I'm missing or is this just a consequence of daily volatility? [link] [comments]  |
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