Discover How To Improve Your Trading Accuracy In The Next 30 Seconds Without Using A Stock Screener
What your about to learn has nothing to do with using a stock screener. If you want to greatly improve your stock trading skills and accuracy, you need to learn this secret.
A retired institutional investor told me this secret years ago. The amazing thing is that this simple secret still works today. My accuracy now hovers around 80% thanks to this secret. I use it every week and I'm going to show you how you can use it every week as well.
No doubt you have heard the phrase "two minds can think better than just one". I have a new phrase for you as it applies to this trading secret: "5 Professional Brains Can Produce What 89,697,618 Unprofessional Minds Can't"
That's right. There are an estimated 90 million Americans who are invested in the stock market and not one of them figured out the secret I'm about to tell you. Why? Because they don't have the same tools that the Institutional traders have.
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.
Miller did a study in 1988 that proved that returns are usually negative on Monday. Miller's research seems to suggest that the reason behind this is individual investor trading. In a second study, Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) used what is known as odd-lot trading as a measurement for individual investor trading patterns and found evidence consistent with the Miller 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.
Trading is lower on Monday for large-lot trades. Also, small traders have more sell orders on Monday morning compared to other days of the week. If small-size trades reflect individual investor activity and large-size trades reflect institutional investors then both types of investors play a role in the negative return on Monday. The individual traders directly contribute through their trading and institutional traders indirectly contribute through their withdrawal of liquidity on the proceeding Thursday or Friday. Institutions indirectly contribute by their absence on Friday and Monday, which reduces liquidity in the market.
Your odds of making money on your trades are better on Tuesday through Thursday. You will discover your trading accuracy greatly improves when you go long a stock on Tuesday and sell 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. - 23200
A retired institutional investor told me this secret years ago. The amazing thing is that this simple secret still works today. My accuracy now hovers around 80% thanks to this secret. I use it every week and I'm going to show you how you can use it every week as well.
No doubt you have heard the phrase "two minds can think better than just one". I have a new phrase for you as it applies to this trading secret: "5 Professional Brains Can Produce What 89,697,618 Unprofessional Minds Can't"
That's right. There are an estimated 90 million Americans who are invested in the stock market and not one of them figured out the secret I'm about to tell you. Why? Because they don't have the same tools that the Institutional traders have.
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.
Miller did a study in 1988 that proved that returns are usually negative on Monday. Miller's research seems to suggest that the reason behind this is individual investor trading. In a second study, Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) used what is known as odd-lot trading as a measurement for individual investor trading patterns and found evidence consistent with the Miller 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.
Trading is lower on Monday for large-lot trades. Also, small traders have more sell orders on Monday morning compared to other days of the week. If small-size trades reflect individual investor activity and large-size trades reflect institutional investors then both types of investors play a role in the negative return on Monday. The individual traders directly contribute through their trading and institutional traders indirectly contribute through their withdrawal of liquidity on the proceeding Thursday or Friday. Institutions indirectly contribute by their absence on Friday and Monday, which reduces liquidity in the market.
Your odds of making money on your trades are better on Tuesday through Thursday. You will discover your trading accuracy greatly improves when you go long a stock on Tuesday and sell 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. - 23200
About the Author:
By Lance Jepsen. May your trading accuracy greatly improves after reading this article. For more secret stock trading tips see stock screener
posted by X - Men @ 3:07 AM
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