When retail investors trade their brokerage accounts excessively this is thought to be caused by overconfidence based on a false sense of insight into the investment’s future performance. The typical result is lower overall returns due to trading costs as well as from selling winners too soon and holding losers too long. Selling winners too soon and holding onto losers too long is called the disposition effect. There is no evidence in this question that Arturo is exhibiting the disposition effect. Many retail investors also typically display the home bias effect which is the behavioral trait of investors placing a high proportion of their assets in the stocks of firms in their own country. This is closely related to familiarity where investors invest in stocks they are familiar with such as domestic stocks or their own company stock. | 
