RT Journal Article SR Electronic T1 Professional Trader Order-Selection and Prior Outcomes JF The Journal of Trading FD Institutional Investor Journals SP 23 OP 33 DO 10.3905/jot.2007.694826 VO 2 IS 4 A1 Ryan Garvey A1 Fei Wu YR 2007 UL https://pm-research.com/content/2/4/23.abstract AB We examine whether prior outcomes influence the order selection decisions of proprietary stock traders who trade the capital of a National Securities Dealer. Trader's decision to either take or provide liquidity is correlated with their prior trading performance. When traders experience increasing trading gains or decreasing trading losses, they subsequently increase the rate at which they take liquidity. These finding are consistent with behavioral theories on sequential decision-making. The trader's behavior appears suboptimal because traders who systematically deviate from their normal order submission strategies experience lower profitability.TOPICS: Accounting and ratio analysis, exchanges/markets/clearinghouses