Improve Your Trade Accuracy Without Using A Stock Screener
What I'm about to show you has nothing to do with a stock screener. This one little secret can totally improve your trading accuracy in any market.
It almost seems to good to be true, but in fact it is true. I learned this secret from a retired institutional trader years ago and it still works today! I have managed to increase my trade accuracy to 80% after learning this simple rule. I directly make money from this secret every week. Not only that, but YOU can duplicate what I have done and make money every week. I will show you exactly what to do in the next 30 seconds.
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: "4 Institutional Minds Can Produce What 90,000,000 Unprofessional Brains 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.
Weekend Effect: Trading Activity is Lower On Friday and Monday and Returns Are Negative On Monday
Way back in 1988, a genius called Miller proved that returns are usually negative on any given Monday. Miller said that this anomaly might just be the result of small investor trading activity. In another study done two years later, Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) used odd-lot trading as a measurement for what smaller, non-institutional investors were doing and found evidence that supported 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.
Because markets have a tendency to dip on early Monday trading, don't get stopped out of your trade too quickly based on Monday trading activity. Monday's have the highest occurrence of head fakes to the downside. - 23226
It almost seems to good to be true, but in fact it is true. I learned this secret from a retired institutional trader years ago and it still works today! I have managed to increase my trade accuracy to 80% after learning this simple rule. I directly make money from this secret every week. Not only that, but YOU can duplicate what I have done and make money every week. I will show you exactly what to do in the next 30 seconds.
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: "4 Institutional Minds Can Produce What 90,000,000 Unprofessional Brains 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.
Weekend Effect: Trading Activity is Lower On Friday and Monday and Returns Are Negative On Monday
Way back in 1988, a genius called Miller proved that returns are usually negative on any given Monday. Miller said that this anomaly might just be the result of small investor trading activity. In another study done two years later, Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) used odd-lot trading as a measurement for what smaller, non-institutional investors were doing and found evidence that supported 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.
Because markets have a tendency to dip on early Monday trading, don't get stopped out of your trade too quickly based on Monday trading activity. Monday's have the highest occurrence of head fakes to the downside. - 23226
About the Author:
Written Author is Lance Jepsen. I hope your stock trading accuracy greatly improves after reading this article. For more secret stock trading tips go to stock screener
posted by X - Men @ 1:45 AM
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