Do sophisticated retail investors make money with their news-driven stock trades? In his September 2026 paper entitled "Heterogeneous Retail Investors and their Trading Behavior", Andrew Glover employs trade size to categorize retail traders as either sophisticated, well-capitalized and experienced (Savvy) or unsophisticated (Naive) and compares their stock trading responses to the same firm disclosures. He examines directional correctness, timeliness and costliness of these trades. Using dates of firm press releases and earnings announcements and contemporaneous trading data during January 2014 through December 2023, he finds that:
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