Let fewer trades be a decision
A busy account is not necessarily a better-performing account. Buying and selling costs can eat into returns.
Resist trading more often just because markets are moving sharply.
In 1991–1996 US accounts, households trading the most returned 11.4% yearly versus the market's 17.9%.
Why consider it?
The observational brokerage study compares realized annual returns in an older US sample. It does not promise either return today or prove that stopping trading produces the difference. Trading costs explained much of the gap in the study. Chinese market figures are omitted; this is not personalized investment advice.
Read the sources
Source grade A is reproduced from the original work. It does not establish suitability for everyone.
Original item: chapter 5, item 15 ↗Adaptation: Rewritten in English from the locked Chinese original; retained evidence grade and study limits. Effect sizes quoted from the cited source: estimates are kept in their original comparison and population; observational associations are not described as proven personal gains. China-specific statistics, legal rules and procedures omitted. r3 AI review: Specified the households that traded the most, rather than frequent traders generally; retained historical returns.
Make space for a practical habit.
Add this idea to your local checklist.