Single Men Trade Stocks Too Much

Nick Kapur at The Motley Fool says that men trade stocks more frequently than women. This is not a good thing; the result of all this hyperactivity and overconfidence is lower earnings on your investment. He writes, “Worse still (for unmarried guys like me) is that single men trade a whopping 67% more than single women, earning them annual net returns of 2.3% less! The authors cite increased trading costs, taxes, and a greater tendency to speculate as reasons for this underperformance.”

“Attention, Single Men: Stop Trading So Much” [The Motley Fool]
(Photo: goatling)

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  1. krunk4ever says:

    This article doesn’t really mean much more details on how those %s came about. Were they over a 1 year period? Were they over a 10 year period? How many participants were included in the survey.

    All we know is that they used the the “oft-cited study by Brad Barber and Terrance Odean”.

  2. Chris Walters says:

    @krunk4ever – check the comments for a link to the original paper (which in turn is buried halfway down a list of papers–check the “published” section).

    It’s too academic for this blog, but if you don’t believe it and want details that’s where to look.

  3. N.RobertMoses says:

    And in a few weeks there will be another study contradicting this one. Studies seem to be the only thing these academics do and it seems like they are just doing them to look like they are actually doing something productive.

  4. Jim Hsu says:

    I don’t get it why articles do not take an extra minute to provide a MLA or APA style reference, or link to the paper in question (in this case, the paper is accessible by the public).

    Here’s the link: [faculty.haas.berkeley.edu]

    I certainly don’t think it’s too academic, and I don’t major in economics or psychology. Could be organized better though.

  5. hateeecs says:

    My managed account is down much, much less than all of my 401k mutual funds over the last few years.

    • failurate says:

      @hateeecs: I know things are much different on the massive scale that most mutual fund managers work on… but what the hell? They could all be replaced by dart throwing monkeys and the performance would be similar or better.

  6. parliboy says:

    Meh. Last year, I set up a $2,000 stock purchase before I went to bed. I checked it about 10:00 AM, and saw that the value was $2,400. You’re damn right I sold it, and I’d do it again.

    OTOH, I stopped investing in July, so I’m up 50% against the market. Again, meh.

  7. FuryOfFirestorm says:

    Didn’t our mothers warn us that “trading stocks” too much caused hairy palms and blindness?

  8. SexCpotatoes says:

    I don’t believe it, after all, it’s an accepted law that men always make more than women, it’s called “wage discrimination.”

    /sarcasm

  9. Yossarian says:

    @parliboy: Look up “anecdotal,” meh.

  10. parliboy says:

    Oh, certainly anecdotal. I read that from the perspective of: “Hey, they’re talking about males who trade. I’m a male who trades. And I don’t really care all that much.”

    Thus, the meh.

    Apologies if the intent of my statement was off.

  11. JustThatGuy3 says:

    @parliboy
    @hateeecs

    If you hold a coin-flipping contest, somebody’s going to win.

  12. RandomHookup says:

    Another “single men have trouble with commitment” article. I’m surprised it didn’t show up right before V-Day.

  13. cmdrsass says:

    men hunt for the higher yield while women nest.

  14. nakedscience says:

    SexCpotatoes, I don’t think you really know what “wage discrimination” means…

  15. ChuckECheese says:

    This reminds me of men hogging the TV remote and constantly changing channels.

  16. kwsventures says:

    Until Obama takes away my freedom, I will invest as I like.