Empirical Research of Disposition Effects in Vietnam’s Stock Market

Abstract

     This paper examines some cognitive biases of Vietnamese stock investors by ana- lyzing trading records for 1,201 accounts at a brokerage firm. These investors tend to make poor trading decisions by selling good stocks and buying bad stocks. They demonstrate a significant reference to holding the losing stocks and selling the win- ing stocks which is known as the disposition effect. It provokes many implications for researchers, market practitioners and policy makers.