Trade Like a Hedge Fund, by James Altucher
November 28th, 2008Page 189 – The Wednesday Reversal
My final note on this book is the concept of the ‘Wednesday Reversal’. Altucher references the phrase that ‘the dumb money invests in the beginning of the week and the smart money invests at the end’, and then makes his point that Wednesdays are a statistically significant day for reversals to occur. His strategy is specific suggesting to
- Buy QQQ when the low of Tuesday is 5 percent less than the high from Monday and when the low of Tuesday is less than the low from Monday.
- Sell QQQ when two consecutive up closes occur. Sell at the close after the second up close occurs
If you don’t employ this strategy using automated trading software, you should at least be aware of reversals, especially from oversold conditions, on Wednesdays.
Once again, if you enjoyed my Key Takeaways for this book, consider buying the full copy from Amazon:
Trade Like a Hedge Fund: 20 Successful Uncorrelated Strategies & Techniques to Winning Profits
by James Altucher
Published in 2004
No related posts.