The fact that there is a database of Finnish household's trading activity bothers me. However, I think we're mixing up risky investing with frequent turnover. I can have an investment strategy that invests in high-risk stocks and mutual funds without frequently flipping or churning through my profile, and in the long run that might be a sensible strategy for me, depending on my comfort level and how long term my strategy is. These people aren't doing that. They're jumping from one investment to another, looking for that one magic stock that will make them rich.

It's been proven by psychologists that those who engage in risky behavior such as speeding are more prone to desire more activities that give them a thrill...even something so seemingly mundane as stock market trading can become an activity of extreme thrill for a lot of people because it is a gamble. Many gamblers are high risk takers, because gambling is not a safe bet...there are risks involved.

I don't know if I necessary engage in speeding because it's risky...I do it because I'm impatient while travelling long distances. 5 more mph over the course of an 800 mile trip is pretty substantial.

That said, I don't really speed off the interstate, and I don't turnover my portfolio regularly. I do, however, have a high risk tolerance with my investments.

So what does this study tell me exactly?...

What this study tells is that people who GET CAUGHT speeding are also not particularly careful with their investments. "People who sometimes drive faster than the speed limit" is a different set than people who get lots of speeding tickets, though the sets have some overlap. It's also a different set than "People who are poor or risky drivers" and "people who have more accidents" but the insurance companies don't want to admit THAT, because it would reduce one of their excuses for raising rates.

@enm4r: That you are a unique little snowflake.

@enm4r: That you know the difference between good risk and bad risk? Going 5-10 over on the interstate, or investing in high risk equities are generally a good idea because the payoff is worth the risk. Buying lottery tickets or going 15-20 over on secondary roads would not be worth the risk, for example.

@B: Absolutely. High risk in the markets has more to do with my "life situation" if you will, and less to do with complete overhauls looking for the next big thing.

Basically what the article mentions is the equiv of treating investing like the lottery, which I agree they are not distinguishing enough.

I'm more than comfortable with my long term, risk adverse, investment strategy. I guess I'm also comfortable thinking the I-95 sign is the speed limit...

So, that Jerome Kerviel guy @ Societe General, he speed much?