Article

# How Profitable is Day Trading? A Study on Day-Trading in Korean Stock Market

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

## No full-text available

... Rossi studied calendar effects in the stock market of Italy and found that the calendar anomalies exist in the Italian stock market (Rossi and Fattoruso, 2017). Lee et al. (2007) examined the effectiveness of intraday trading for the stock market of Korea applying trading records of a four-month time and found that while few intraday traders earn profits, most of them, lose money due to abnormal transactions expenses. ...
... Most discussions of day trading seek to analyse the profits gained in different countries, such that Barber et al. (2004) consider the Taiwanese stock market, Linnainmaa (2005) investigates Finland's stock market, and Lee et al. (2007) research the Korean stock market. The results of these studies tend to indicate that day traders prefer to avoid trading losses but fail. ...
... Most discussions of day trading seek to analyse the profits gained in different countries, such that Barber et al. (2004) consider the Taiwanese stock market, Linnainmaa (2005) investigates Finland's stock market, and Lee et al. (2007) research the Korean stock market. The results of these studies tend to indicate that day traders prefer to avoid trading losses but fail. ...
Article
Article
Article
Article
This study investigates the profitability and characteristics of day trading in the KOSPI 200 futures market, one of the largest and most remarkable index futures markets in the world. By using a high-quality data set that classifies various investors into a number of key categories and provides detailed information on their identity, we find that domestic individuals face substantial losses from day trading and that individual day traders who trade more frequently and heavily are more likely to suffer such losses. In contrast to individual day traders, who account for the largest portion of total day trading activity but perform poorly, domestic money managers and foreign institutional investors generally make substantial profits through day trading, which is noteworthy in that their day trading activity accounts for only a small portion of total day trading activity in the futures market.
Article
Prior analyses of prices of the NYSE and other exchanges find that transitory price volatility is greater at the open of trading than at the close. We extend this line of research by using 40 years of hourly Dow Jones 65 Composite price index data to estimate transitory volatility throughout the trading day. Our results indicate that transitory volatility steadily declines during the trading day. We find a similar intraday decline in transitory volatility for a $2{\textstyle{1 \over 2}}$-year sample of the individual firms in the Dow Jones 30 Industrials Index. The results are consistent with the hypothesis that trading aids price formation and do not support the argument that particular trading mechanisms are the source of greater volatility at the open of trading.