Another study finds churning portfolio is bad

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We’re aware that frequent stock trades can hurt your portfolio—and not just because they lead to an excessive amount of trading fees. Now, another study confirmed that investors who trade frequently aren’t necessarily more successful than those who don’t.

The study, which was released in March 2017, was conducted by two researchers who examined 3 years’ worth of stock-trading data. Although the data involved United Kingdom investors, the results likely translate to investors anywhere, says one researcher, Daniel Richards, who is a lecturer of wealth management at RMIT University in Melbourne, Australia.

The study’s profile of heavy traders is useful in aiming educational materials at those traders to get them to reduce their trading frequency, says researcher Gizelle Willows, who is a senior lecturer of accounting at University of Cape Town in South Africa.