Wall Street Journal
http://online.wsj.com/article/ …
Mark Hulbert
Business and finance professor Terrance Odean is quoted in a story about individual investors and the question of whether it’s possible to outperform the market. Based on his studies of the behavior and performance of individual traders, he says that there used to be another human being on the other side of the trade when an individual bought or sold a stock. "Now it’s a supercomputer you’re competing with." He adds that some of the poorest performances in his studies were turned in by traders who were the most confident of their abilities, which led them to trade even more often and incur even more risk. This tendency, he says, often leads them to do precisely the wrong thing
