Trade-Ideas is a stock scanner created with active day traders in mind. The scanner has become quite famous among day traders for its endless customisation, massive amounts of data and prominence among well known day traders. One of the platform’s main selling points is it’s artificial intelligence engine nicknamed Holly that identifies trading opportunities in real-time. Holly is […]
stocks
October Update – I’m Backing Britain
October was a fairly busy month. I published a new class to Marwood Research and made three more stock investments for our long term portfolio. As I mentioned in a previous post, this portfolio is part of a project called Zero To One Million where I am attempting to get to $1 million in equity […]
The Truth About Zero Commissions
Popular brokerages like TD Ameritrade and Schwab have cut their trading commissions to zero and more brokers are following suit. A reader asked about the impact of zero commissions on trading so I thought I would share my thoughts below. Mixed Feelings My first impressions of this news are mixed. It’s great to have zero […]
Do Most Stocks Fail To Beat Treasury Yields?
There’s a study that has been doing the rounds for some time called “Do Global Stocks Outperform Treasury Bills?” In the study, the authors come to the conclusion that most stocks fail to beat the return on cash (1-month Treasury bills). In fact, across a sample of 62,000 global stocks between 1990-2018, 56% of US […]
26 Stock Market Strategies That Beat Buy And Hold
Profitable stock market strategies are not easy to come by. One proven path is to seek out stock market anomalies. A stock market anomaly is a rate of return or investment strategy that seems to defy the efficient market hypothesis. Today, most investors agree that markets are fairly efficient even if they don’t believe in […]
Only Optimists Make Money In Stocks
I came across the following quote on Twitter: Unless you’re a perennial short seller, pessimism about the future is of no help. Only optimists make money in the markets. D Mutukrishnan Mutukrishnan has a great way of words and I think this quote is very true. If you’re too pessimistic about the market you’re going […]
Can You Improve Trend Following Strategies With Price To Earnings?
In a previous article we looked at the effects of introducing price to earnings data to a mean reversion strategy. Although the effects were quite small, we found that we could improve a simple RSI strategy by avoiding stocks with negative PE ratios. We also found that stocks with PE ratios over 15 produced higher […]
Improving Mean Reversion Strategies With Price To Earnings
I’ve always wondered whether you can improve a trading strategy by including fundamentals. For example, should you trade mean reversion stocks with a low PE or a high PE? Most mean reversion strategies use technical indicators and the RSI(2) and RSI(3) indicators are particularly popular among traders. However, there isn’t much research on combining those […]
Does This Trading System Really Make 20% Per Year?
The trading website Finviz.com shows a simple strategy based on the RSI indicator with an annualised performance of 19.59% per pear. The rules are to go long a stock from the S&P 500 when RSI(5) crosses under 20 and to sell when RSI(5) crosses back over 50. The following chart shows the backtest performance published […]
Should You Ignore Financial Stocks?
The financial sector took a battering in the 2008 crash which led to at least two major headwinds for financial stocks: Financial companies became highly regulated. New laws came in that prevented banks and other institutions from making the big profits they were used to. Quantitative easing caused interest rates to drop to record lows. […]
