The Turnaround Tuesday Trading Strategy The Turnaround Tuesday effect happens from the close of Monday’s trading session until (at least) the close of Tuesday’s trading session. The effect is no myth! Let’s do some backtesting to find what seems to work and not work. This article looks at the Turnaround Tuesday trading strategy. Buying on…
The 200-day moving average trading strategy is frequently used as an indicator in the financial markets. Who hasn’t heard about the “Death Cross”, “support at the moving averages”, “the trend is positive because the price is above the averages”, etc.? Among the moving averages, the 200-day moving average is probably the most used and referred…
The lower highs and lower lows pattern signals a downtrend. Is this likely to continue or reverse? What is the meaning of a lower highs and lower lows pattern? In almost all markets, the lower high and lower low pattern signals a short-term reversal. We develop multiple lower high and lower low trading strategies. The…
Determining the right mix of assets to help you reach your short-term and long-term financial goals is the key to building a winning investment portfolio. For many years, financial advisors and experts recommend the 60/40 portfolio because of its simplicity and favorable risk-adjusted returns. But given the changing economic situations in 2022 and the 60/40…
How can you hedge against huge losses from totally random and unpredictable events? How can you insure yourself from devastating losses that come out of the blue? This is what tail risk hedging strategies are all about. Tail risks in the stock market are hard to protect against, but in this article, we offer some…
This article argues why scalping is a waste of time. Why? Because you highly likely end up losing money. We don’t recommend scalping when trading. Scalping is hard and almost all scalpers end up losing. Scalping is a waste of time because it involves competing with better-equipped traders and institutions and you need to deal…
What is the holy grail in trading? Is there a holy grail trading strategy? The closest thing to a holy grail in trading is diversification. There is no holy grail trading strategy or strategies, but consistency can be achieved via non-correlated strategies. This is not a simple process but requires hard work plus delayed gratification….
Turtle trading strategies are a trading approach named after Richard Dennis’ popular trading experiment in 1983. The experiment was to determine whether trading was an inborn skill or could be learned. The turtle trading experiment was a huge success, and the strategy employed by those traders was very successful all through the 1980s. But does…
What percentage of traders fail? What percentage of traders are successful? How likely are you to succeed as a trader? Frequently, we read that 90% of traders fail to make money and just a tiny fraction of traders are able to make money over time. Is this number correct? Our research suggests that about 70…
As Warren Buffett rightly said: “You need to be fearful when others are greedy, and greedy when others are fearful.” This perfectly applies to the Rubber Band trading strategy, but what is it? The Rubber Band trading strategy is a simple but powerful contrarian/mean-reversion strategy for trading stocks, which is easy to understand and easy…
