Recent studies in financial markets suggest that technical analysis can be a very useful tool in predicting the trend. Trading systems are widely used for market assessment. This paper employs a genetic algorithm to evolve an optimized stock market trading system. Our proposed system can decide a trading strategy for each day and produce a high profit for each stock. Our decision-making model i...

Traders in a stock market exchange stock shares and form a stock trading network. Trades at different positions of the stock trading network may contain different information. We construct stock trading networks based on the limit order book data and classify traders into k classes using the k-shell decomposition method. We investigate the influences of trading behaviors on the price impact by ...

The disposition effect refers to the empirical fact that investors have a higher propensity to sell risky assets with capital gains compared to risky assets with capital losses, and it has been associated with low trading performance. We use a stock trading laboratory experiment to investigate if it is possible to reduce subjects' tendency to exhibit a disposition effect by making information a...

Article history: Received 27 October 2007 Received in revised form 18 June 2008 Accepted 18 June 2008 Available online 26 June 2008 This paper investigates the effect of stock market microstructure on managerial compensation schemes. We propose and empirically demonstrate that the sensitivity of chief executive officer's (CEO's) compensations to changes in stockholders' value is higher when the...

A stock market is a highly complex dynamical system. Stock-price movements are not solely driven by fundamental values but in particular influenced by short term trading behaviour. Chartists use trends to forecast future price directions, whereas fundamentalists estimate stock prices based on dividend payouts or company earnings. Such strategies can similarly be deployed in automatic trading ag...

Internet stock message boards provide individual investors with a new information medium that could have several effects on stock activity. Message boards may provide investors with a new information source on small cap stocks. Message boards may affect the trading and volatility of certain stocks by influencing investors. The impact of message board information may vary according to characteri...

The daily stock turning point detection problems are investigated in this study. The Support Vector Regression model has been applied in various forecasting applications and proved to be with stable performances. In this research, SVR has been used to predict the trading signal since it could handle overall information effectively even under the complex environment of stock price variations. Th...

We present an artificial stock market in which simple trading agents enter an asynchronous double auction market to trade in a single stock. Beginning with a population of random trading agents drawing their bid prices from a normal distribution around the current price, we compare the statistical properties of the emergent stock price return distribution to that observed on a real price series...

In recognizing the power of electronic commerce in continuously provided service context, this paper examines personal and situational factors as well as transactional characteristics influencing customers’ use of electronic commerce in stock trading. Empirical data were collected from an intercept field survey of individual customers of two major Korean stock trading brokers. Our results show ...

Acquisition announcements generate predictable movements in the price of the acquirer’s stock. For example, post-announcement returns are typically negative for high Tobin’s q acquirers, stock transactions, and foreign targets, but positive for private equity-backed private targets. Pre-announcement trading of acquirer’s stock is more likely to be attributable to insider trading when the pre-an...