Find something that is structural | stockbee


Find something that is structural

Find something that is structural in nature of the market.

As a trader your task is to find some structural phenomenon to build your edge around.

It should exists in the market and not figment of imagination.

If you find structural edge it will last decades.

What are some of the structural things in the market:

1 Market moves in momentum bursts

2 Momentum stocks outperform non momentum stocks

3 longer term momentum is mean reverting

4 Surprisingly good earnings leads to rallies

5 News leads to immediate moves

6 small cap/small float outperform larger stocks

7 lower priced stocks outperform higher priced stocks

Now if you know any of these you can build your trading around it.

Structural edge is something that has been tested thousands of time and has been around for hundeds of years. 

No comments: