Here is a petty nugget of trading wisdom: the marketplace position systematically punishes salience. Show me a strategy that makes role of highly salient data (i.e., data that is probable to stick inwards the hear at first, casual exposure) in addition to I'll exhibit you lot a strategy that underperforms.
Many mechanical/algorithmic programs brand role of this principle, specially at brusk fourth dimension frames.
Going dorsum to 2002, if you lot bought the S&P 500 Index (SPY) next an upward twenty-four hours during an upward week, the side past times side calendar week averaged a toll loss of -.18% (338 up, 324 down). If you lot bought the S&P 500 Index next a downwardly twenty-four hours during a downwardly week, the side past times side calendar week averaged a toll gain of .33% (283 up, 201 down).
Market technician Joe Granville famously asserted that if it's obvious, it's apparently wrong.
That's the salience principle, in addition to it's why impulsive trades in addition to therefore oft are losers.
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