Secret That Improves Your Stock Trading Accuracy Without 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.
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 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.
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.
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 lower on Friday for large-size trades which is why volume tends to be lower on Fridays. Institutional traders often zero out their trades on Thursday or the latest Friday. Institutional traders do not like to go into the weekend news cycle with 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 will be most accurate with your trades on Tuesday through Thursday. You will find that your accuracy rate of successful money making trades goes up if you take an entry on Tuesday and exit on Thursday or at the latest Friday.
Now that you know markets have a habit of dipping on early Monday trading, do not sell your stock too early based on Monday morning trading activity. Remember, Monday's have the greatest number of head fakes to the downside. - 23208
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.
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 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.
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.
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 lower on Friday for large-size trades which is why volume tends to be lower on Fridays. Institutional traders often zero out their trades on Thursday or the latest Friday. Institutional traders do not like to go into the weekend news cycle with 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 will be most accurate with your trades on Tuesday through Thursday. You will find that your accuracy rate of successful money making trades goes up if you take an entry on Tuesday and exit on Thursday or at the latest Friday.
Now that you know markets have a habit of dipping on early Monday trading, do not sell your stock too early based on Monday morning trading activity. Remember, Monday's have the greatest number of head fakes to the downside. - 23208
About the Author:
Written by Lance Jepsen. I hope your trading accuracy totally improves after reading this article. For more Wall Street insider trading tips go to stock screener
posted by X - Men @ 9:43 AM
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