Using data from the Taiwan futures market, a closer examination is given to day traders’ behavior and performance. Day traders’ performances are “risk-adjusted” and analyzed to identify behavioral biases and the resulting impact on performance. Upon examination, there is no evidence found that trading too much is detrimental to investment performance. Sophisticated investors are more aware of the danger of behavioral biases and are as a result less prone to the disposition effect. Contrary to expectations, day traders in my study sample are shown to be non-loss averse. There is no evidence found that supports that more successful traders follow a momentum strategy.

Using data from the Taiwan futures market, a closer examination is given to day traders’ behavior and performance. Day traders’ performances are “risk-adjusted” and analyzed to identify behavioral biases and the resulting impact on performance. Upon examination, there is no evidence found that trading too much is detrimental to investment performance. Sophisticated investors are more aware of the danger of behavioral biases and are as a result less prone to the disposition effect. Contrary to expectations, day traders in my study sample are shown to be non-loss averse. There is no evidence found that supports that more successful traders follow a momentum strategy.

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