2 ms·
A quick reminder to everyone that buying all time lows on a stock is one of the worst equity strategies possible (statistically). Go ahead and run a backtest.
by hodder 7y ago
A quick reminder to everyone that buying all time lows on a stock is one of the worst equity strategies possible (statistically). Go ahead and run a backtest.
On the flip side, buying stocks at all time highs, while counter intuitive, is one of the best equity strategies available (with trailing stops).
Buying Uber stock here is borderline moronic until the trend turns around.
- alteria 7y agoI'm curious, anywhere where I could read more about the high/low statistics?
- hodder 7y agoFor sure. Here are some links: https://www.cis.upenn.edu/~mkearns/finread/trend.pdf https://www.cis.upenn.edu/~mkearns/finread/trend.pdf https://www.bauer.uh.edu/TGeorge/papers/gh4-paper.pdf https://www.bauer.uh.edu/TGeorge/papers/gh4-paper.pdf https://mebfaber.com/2007/05/30/buying-the-highs-vs-buying-the-lows/ https://mebfaber.com/2007/05/30/buying-the-highs-vs-buying-t... https://allocatesmartly.com/buying-global-stocks-at-all-time-highs/ https://allocatesmartly.com/buying-global-stocks-at-all-time... https://mebfaber.com/2019/11/04/is-buying-stocks-at-an-all-time-high-a-good-idea/ https://mebfaber.com/2019/11/04/is-buying-stocks-at-an-all-t...