You know all those price tracking alerts you can get from your broker that alert you to changes in price for your favorite stock, mutual fund or ETF, or that alerts you about 52-week highs or lows?
The authors, Che-Wei Liu, Yanzhen Chen, Ming-Hui Wen, partnered with one of the largest retail mutual fund investment platforms in Taiwan, which provides a free price tracking alerts tool.
Why did the group that utilized the price alerts underperform?
Because the price alerts made traders cocky and because a lot of the traders were financially illiterate and didn't understand what they were doing.
The SEC is worried too The SEC has expressed concerns over these digital trading platforms, including ones that provide price tracking alerts, which may be encouraging excessive trading.
Persons:
Wei Liu, Yanzhen Chen, Ming, Hui Wen, Larry Swedroe
Organizations:
Strategic Wealth, SEC, Industry Regulatory Authority
Locations:
Taiwan