Who Is Successful in Foreign Exchange Margin Trading? New Survey Evidence from Japan
Bernd Hayo () and
Kentaro Iwatsubo ()
MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)
We use a 2018 survey of FX margin traders in Japan to investigate which key factors influence their performance: socio-demographic and economic situation, investment strategy and trading behaviour, and/or financial literacy. First, the data show that variables from all three groups are significant predictors of traders’ performance. Second, we find that older traders and those without a specific trading strategy demonstrate lower performance. Performance is higher for those who trade greater amounts, rely more on fundamental analysis, and report having profitable FX trade skills. Third, respondents’ subjectively stated claim of having FX trade skills is based on a more advanced understanding of FX trading and a reliance on professional advice. Neither objective financial knowledge nor over/underconfidence play a noteworthy role in the performance of margin traders.
Keywords: Foreign exchange margin trading; investor survey; foreign exchange trading profits; financial literacy; Japan (search for similar items in EconPapers)
JEL-codes: F31 G11 G28 G40 (search for similar items in EconPapers)
Pages: 22 pages
New Economics Papers: this item is included in nep-fle
References: View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.uni-marburg.de/fb02/makro/forschung/mag ... 019/17-2019_hayo.pdf First 201917 (application/pdf)
Working Paper: Who Is Successful in Foreign Exchange Margin Trading? New Survey Evidence from Japan (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201917
Access Statistics for this paper
More papers in MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) Contact information at EDIRC.
Bibliographic data for series maintained by Bernd Hayo ().