Not All Methods Of Improved Trading Use A Stock Screener
This secret does not involve using a stock screener. In fact, this one simple stock trading secret indisputably proves you can greatly improve your trade accuracy in every single market condition.
I was told this secret by a retired institutional trader several years ago. It still works today. It seems to good to be true. Using this secret I have increased my trade accuracy to nearly 80%. Every week I use this secret. I'm going to show you exactly how to duplicate this secret and improve your own trading accuracy.
Have you ever heard the term two minds think better than one? Well... I have actually redefined that term: 5 Professional Institutional Minds Can Produce What 89,697,618 Unprofessional Minds Can't
There is more than 85 million traders in the U.S. alone and yet none of them have discovered the secret I'm about to tell you. Is this because most traders are ignorant? No it is not. The reason is that institutional investors have a range of tools that give them better insight into the market and in spotting trends before the average trader.
What I'm about to show you is called behind closed doors the "Weekend Effect". The Weekend Effect is basically this: trading activity is less on Friday and Monday with Monday having negative returns.
In 1988, Miller's research showed that returns, on average, are negative on Monday. Miller (1988) suggests that this anomaly could be the result of individual investor trading activity. Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) use odd-lot trading as a proxy for individual investor trading patterns and find evidence consistent with this hypothesis.
Trading activity is less on Friday for large-lot trades which is why the volume tends to be lower on this day. So institutional traders will zero out their trades on Thursday or Friday. Institutional traders don't like going into the weekend news cycle with any open positions.
Monday has lower trading volume than any other day of the week. Small, individual traders have more sell orders on Monday than any other day of the week. If small-size trades show individual investor activity and large-size trades show institutional investors then both types of investors play a key role in Monday being a negative return day. The individual traders contribute through their trading while institutional traders contribute through their withdrawal of liquidity on the proceeding Thursday or Friday. Institutional traders contribute by their absence on Friday and Monday, which reduces liquidity.
You can increase your odds of having a money making trade by going long on Tuesday and taking profits on Thursday.
Now that you know markets often sell off on Monday, you can buy Monday's sell off. At the very least, don't sell your long position on Monday. Early Monday trading has the greatest percentage of downside head fakes. - 23221
I was told this secret by a retired institutional trader several years ago. It still works today. It seems to good to be true. Using this secret I have increased my trade accuracy to nearly 80%. Every week I use this secret. I'm going to show you exactly how to duplicate this secret and improve your own trading accuracy.
Have you ever heard the term two minds think better than one? Well... I have actually redefined that term: 5 Professional Institutional Minds Can Produce What 89,697,618 Unprofessional Minds Can't
There is more than 85 million traders in the U.S. alone and yet none of them have discovered the secret I'm about to tell you. Is this because most traders are ignorant? No it is not. The reason is that institutional investors have a range of tools that give them better insight into the market and in spotting trends before the average trader.
What I'm about to show you is called behind closed doors the "Weekend Effect". The Weekend Effect is basically this: trading activity is less on Friday and Monday with Monday having negative returns.
In 1988, Miller's research showed that returns, on average, are negative on Monday. Miller (1988) suggests that this anomaly could be the result of individual investor trading activity. Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) use odd-lot trading as a proxy for individual investor trading patterns and find evidence consistent with this hypothesis.
Trading activity is less on Friday for large-lot trades which is why the volume tends to be lower on this day. So institutional traders will zero out their trades on Thursday or Friday. Institutional traders don't like going into the weekend news cycle with any open positions.
Monday has lower trading volume than any other day of the week. Small, individual traders have more sell orders on Monday than any other day of the week. If small-size trades show individual investor activity and large-size trades show institutional investors then both types of investors play a key role in Monday being a negative return day. The individual traders contribute through their trading while institutional traders contribute through their withdrawal of liquidity on the proceeding Thursday or Friday. Institutional traders contribute by their absence on Friday and Monday, which reduces liquidity.
You can increase your odds of having a money making trade by going long on Tuesday and taking profits on Thursday.
Now that you know markets often sell off on Monday, you can buy Monday's sell off. At the very least, don't sell your long position on Monday. Early Monday trading has the greatest percentage of downside head fakes. - 23221
About the Author:
Written by Lance Jepsen. I hope your stock trading accuracy totally improves after reading this article. For more Wall Street insider trading tips go to stock screener
posted by X - Men @ 4:16 AM
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