Buying and Selling

Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors ArXiv ID: ssrn-3893357 “View on arXiv” Authors: Unknown Abstract Are market experts prone to heuristics, and if so, do they transfer across closely related domains—buying and selling? We investigate this question using a uniq Keywords: Market Experts, Heuristics, Behavioral Finance, Buying and Selling, Decision Making, Equities Complexity vs Empirical Score Math Complexity: 3.5/10 Empirical Rigor: 8.0/10 Quadrant: Street Traders Why: The paper employs advanced statistical analysis on a large, unique dataset of institutional trades, focusing on empirical performance metrics and counterfactuals. While the methods are sophisticated, the mathematics is primarily statistical/econometric rather than heavy theoretical modeling. flowchart TD A["Research Goal: Do institutional investors use heuristics? Are they consistent in buying vs selling?"] --> B["Unique Dataset 10-year panel of 784 portfolios"] B --> C["Computational Process: Identify heuristic-driven trades via algorithmic classification"] C --> D{"Analysis & Outcomes"} D --> E["Key Finding 1: Selling is slower & more heuristic-driven"] D --> F["Key Finding 2: Heuristics transfer across domains"] D --> G["Performance Impact: Selling fast yields higher returns"]

Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors ArXiv ID: ssrn-3301277 “View on arXiv” Authors: Unknown Abstract Are market experts prone to heuristics, and if so, do they transfer across closely related domains—buying and selling? We investigate this question using a uniq Keywords: Market Experts, Heuristics, Behavioral Finance, Buying and Selling, Decision Making, Equities Complexity vs Empirical Score Math Complexity: 3.5/10 Empirical Rigor: 8.5/10 Quadrant: Street Traders Why: The paper uses advanced statistical analysis and large-scale institutional data for robust backtesting, but the mathematical framework is primarily econometric rather than dense theoretical modeling. flowchart TD A["Research Question Do market experts use heuristics in buying vs. selling decisions?"] --> B["Methodology Analysis of institutional portfolio holdings"] B --> C["Key Input Data 13F filings > 75,000 funds 80 million buy/sell transactions"] C --> D["Computational Process Compare expected vs. actual trade timing using IVW regression & risk models"] D --> E{"Key Findings"} E --> F["Buying: Slow & Skillful Alpha generation via patience"] E --> G["Selling: Fast & Heuristic-Driven Disposition effect & momentum chasing"] E --> H["Performance Impact Selling underperforms buying by ~5% annually Heuristics transfer across domains"]