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> They say that stocks go down during the day and up at night There are lots of things "they say" about the markets, "sell in May and go away" is another famou
by traceroute66 4y ago
> They say that stocks go down during the day and up at night
There are lots of things "they say" about the markets, "sell in May and go away" is another famous one.
Most of it pure BS, some of it is half-true, and the rest are sayings that date back to the "good old days" pre-HFT, Hedge Funds and leveraged trading.
Frankly "stocks go up at night" is a ludicrous proposition.
Feel free to give it a go, but corporate actions, corporate RNS, world events ....."events dear boy, events" will very happily shit on you from a great height if you think you're going to make money through short-term overnight holding.
"Time in the market is better than timing the market" is about the only true saying that remains.
- ChicagoBoy11 4y agoThis one, too, turns out to be incorrect. The source of this is mostly due to the fact that, in fact, if you average out over a longer time horizon, your annualized returns do in fact average out. However, what people miss is that fact that this annualization is being compounded over that entire time as well, so small disturbances to it end up having quite a substantial impact on that end result. The only REAL form of diversification is asset class, not time.