This paper proposes a model to estimate the dynamic psychological anchor and adjustment speed of investors in stock markets. By employing covariate-dependent threshold settings in regression kink models, we identify the changing psychological anchor and how quickly investors adapt to a target...

We show that the moving averages (MAs) of stock market indices act as psychological barriers and affect investors' trading. Market indices do not move continuously near their MAs, especially in markets dominated by unsophisticated investors. Utilizing international markets data, we show that the...

Practical advice and easy-to-follow guidelines for part-time stock tradersMillions of people trade stocks in their spare time, supplementing their nine-to-five income with extra profits on the market. And while there are plenty of books on the market that cater to the needs of full-time traders,...

The past decade has been a time of drastic developments, both in financial markets and in related academic research. Among the most striking developments are the expanded stockholder base, the increased popularity of mutual funds among households, and the growing importance of private pension...