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Finance Seminar

Thursday, October 11, 2018
4:00pm to 5:00pm
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Baxter B125
Learning Fast or Slow
Terrance Odean, Rudd Family Foundation Professor of Finance, Haas School of Business, UC Berkeley,

Abstract: We analyze the performance of and learning by individual investors who engage in day trading in Taiwan from 1992 to 2006 and test the proposition that individual investors rationally speculate as day traders in order to learn whether they possess superior trading ability. Consistent with models of both rational and biased learning, we document that unprofitable day traders are more likely to quit than profitable traders. Inconsistent with models of rational speculation and learning, we document that the aggregate performance of day traders is negative, the vast majority of day traders are unprofitable, and many persist despite an extensive experience of losses.

Finance Seminars at Caltech are funded through the generous support of The Ronald and Maxine Linde Institute of Economic and Management Sciences (

For more information, please contact Sabrina Hameister by phone at 626-395-4228 or by email at