How likely is it that retail investors underperform the market? Sadly, the answer is very likely, almost a certainty. Emotional trading, lack of diversification, poor stock picking, and taxes all work against the average investor. But there’s good news: with…
What happens after the stock market drops sharply? Do stocks usually bounce back—or keep falling? This article explores how often the S&P 500 recovers after a big one-day drop of 2% or more. We examine the win rate and average…
Hendrik Bessembinder, an academic, published a study in 2017 that went on to become widely spread and known. His hypothesis was pretty straightforward: do stocks outperform Treasury Bills? No, most stocks fail to beat one-month Treasury Bills during their lifetime…
The term “10x stock” is often thrown around in investing circles. It refers to a stock that multiplies your initial investment by ten over a set period, usually 10 years. But how common are these elusive investments? Is there a…
Moving average (MA) trading strategies, such as crossover systems, are widely used to identify trends but frequently generate false signals—misleading indications of price movements that fail to materialize. These “whipsaws” can lead to losses, especially in volatile or sideways markets….
Moving averages are among the most popular tools in technical analysis. Simple, elegant, and widely used, they help smooth out price data and highlight trends. But do moving average crossovers—particularly the well-known 50-day and 200-day combination—actually predict future price direction?…
A gap up—when the market opens higher than the previous day’s close—often sparks optimism among traders. But how often does that early surge lead to a green close, where the market ends above yesterday’s close? We ran the numbers to…
A gap down—when the market opens lower than the previous day’s close—can set a grim tone for traders. But how often does that early stumble lead to a red close, where the market ends below yesterday’s close? We crunched the…
Gaps are a common feature in financial markets, and traders often wonder what happens after a gap down at the open. Does the stock market usually keep falling, or does it bounce back during the day? There is a 47%…
In the fast-paced world of trading, a gap up—when a market opens higher than the previous day’s close—can spark excitement and speculation. But what are the odds that the market will sustain that momentum and close above its opening price?…
Technical analysis, a method utilized by traders and investors to forecast future price movements of securities based on historical market data, has long been a subject of debate within the financial community. Proponents argue that patterns and trends identified through…
In trading, the clarity of your strategy’s success is quantified through accuracy. Knowing ‘how to calculate accuracy in trading’ is what stands between you and better trade decisions. This concise guide delivers the formula you need, clear examples, and critical…
Determining “What is the accuracy of MACD trading strategies” is important for traders seeking a reliable technical tool. This article unveils the real-world success rates of this popular strategy, exploring its efficacy in various market conditions and highlighting factors that…
If you’re asking ‘what is the success rate of trend-following trading strategies,’ you’re looking for clear-cut numbers and straightforward facts. Trend following, a strategy built on capturing market momentum, does not have a one-size-fits-all success metric. Rather, its efficiency is…
Curious about what is the accuracy of RSI trading strategies? In the unpredictable world of trading, RSI (Relative Strength Index) stands out as a popular technical indicator, but its true power rests upon how it’s wielded. Key factors such as…
When you look up “what is success rate in trading strategies”, you want the hard facts: how likely is it that you’ll make profitable trades with the approach you’re taking? This key figure, expressed as a potent percentage, encapsulates your…
