Wednesday, April 29, 2015

Being smart with. $$ -- Beware claims of profitable trading trends

"YOU CAN BE A DAY TRADER," shout commercials on CNBC. They implore you to use trading platforms that take advantage of historical trends. But Harvey Campbell, finance professor at Duke, (in Kiplingers March 2015) says if you look hard enough for patterns you'll find them. But he said it's like saying stocks that start with "H" did best last year so buy "H" stocks. When you test for enough factors, by chance there has to be some that appear to matter, even if they don't.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

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