Noise Trader

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Noise Trader

A trader that makes investment decisions based on perceived market movements rather than a security's fundamentals. Put simply, a noise trader buys when everyone else seems to be buying and sells when everyone else seems to be selling. Behavioral economists classify most traders as noise traders, though few investors admit to it. Interestingly, behavioral economists classify all technical information as noise, though not all investors do so.

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Noise Trader Risk			1) This of course raises the question of who can be described as a noise trader. Households, institutions, and financial markets by Campbell, John Y. / NBER Reporter Also, De Long, Shleifer, Summers, and Waldmann (1990) argue that noise traders can cause the premiums to increase for an indefinite period, making this a losing strategy over the short, and perhaps even the medium, term. Explaining premiums in restricted DR markets and their implications: ... by Puthenpurackal, John / Financial Management In the case of closed-end mutual funds, however, the absence of institutional investors in this niche limits the extent of corrective arbitrage, and prices retain a rational component reflecting the risk of noise trader irrationality. MOME in hindsight: how has "The Mechanisms of Market Efficiency" ... by Gilson, Ronald J.; Kraakman, Reinier / Regulation			No Par No Protest No Quote No rescatable No Substitution No-Action Letter No-Asset Loan No-Brainer No-Change Scenario No-Cost Mortgage no-doc loan No-Income Loan No-Load DRIP No-Load Fund No-Load Mutual Fund No-Load Stock No-Net-Sales Policy No-Par-Value Stock No-Ratio Loan no-ratio loans Noah Effect NOB spread NOBO NOI Noise Noise Trader Noise Trader Risk Noisy Chaos NOK Nome fantasia Nominal Nominal Account Nominal Anchor Nominal Annual Rate Nominal Cash Flow nominal consideration Nominal Dollars Nominal Exchange Rate Nominal Exercise Price Nominal GDP Nominal income nominal interest rate nominal partner Nominal Price Nominal Quotation Nominal Quote Nominal Return Nominal Value Nominal Yield Nominalism nominee			Noise reduction Noise reduction Noise reduction Noise reduction Noise reduction Noise Reduction Circuit Noise Reduction Coefficient Noise Reduction Coefficient Noise Reduction Coefficient Noise Reduction Headphones Noise Reduction Rating Noise Reduction Rating Noise rejection Noise Research Advisory Committee Noise Sensitive Area Noise Shaped Video Noise shaping noise silencer noise source Noise Spectral Estimator noise suicide circuit Noise suppression Noise Suppression Circuit Noise Suppression Technologies, Inc. noise suppressor Noise temperature noise testing Noise to Signal Ratio Noise Tolerance Threshhold Noise Tolerant Mining in Databases Noise Trader Noise Trader Risk Noise Trader Risks Noise Traders Noise Transfer Function noise tube noise violations, Hawaii Noise Visibility Function Noise weighting Noise weighting filter Noise Whitening Matched Filter Noise's Off Noise(manga) Noise(manga) Noise(manga) Noise(manga) Noise(manga) Noise, Atmospheric Noise, Receiver Noise, Terrestrial Noise, vibration and harshness Noise, White Noise, White Noise-Adjusted Singular Value Decomposition Noise-Averaged Hermitian-Jacobi Fast Subspace Tracking noise-canceling microphone Noise-Cancelling Microphone Noise-Figure Analyzer Noise-Immune Cavity-Enhanced Optical Heterodyne Molecular Spectroscopy Noise-induced hearing loss Noise-induced hearing loss

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