Abstract
In the Chinese warrants bubble episode, there are multiple put warrants traded in the market with different maturity dates, constituting a sequence of burst of bubbles. This paper exams the impact of experiencing the previous burst period on future warrant market participation and trading performance. About 70% of investors in the last week of put warrants trading are new investor, and most investors learned that they should leave before the burst after trading in a burst stage. However, there is a sub group of investors keep trading in the last week before expiration and lose money even more than new entry.