Can Investors Learn Not to Slip When Trading?

We analyze slippage in US equities and its connection to investor trading experience. Slippage occurs when the execution price differs from the intended target price. We find that investors with greater trading experience incur less slippage. These experienced investors trade a more diverse range of stocks, spread their trading activity more evenly over time, employ a wider variety of order types, and take more time to work their orders. The results suggest that investors learn from their prior trading experiences, enabling them to refine their execution strategies and secure better prices compared to those with less experience.