Thursday, 22 January 2015

Investment calendar 2015: Tips and tricks to play stock market trends

Certain trends repeat themselves offering an opportunity to make money. But how well does each one work? 

Some private investors regard old stock market adages as useless as gazing into a crystal ball.
But others are avid followers and believe there is money to be made from certain stock market trends and patterns in which history often repeats itself.
Here, our investment calendar names seven stock market patterns investors should consider playing in 2015. For each one, whether new or old, we assess whether they still live up to their reputation or have simply become a passing trend.
1. January to April: Buy the ten worst performing UK shares and sell after three months
This will be one of the less familiar strategies on the list but it is tactic which IG, the stockbroker, argues normally works.
Investors simply buy the ten worst performing shares in the FTSE 350 over the past year and then sell three months later.
The idea is that these shares will bounce back quickly as contrarian investors fish for shares that have become too cheap to ignore after being out of form. As these investors pile in the shares sharply jump in value.
Does it work? Success rating 77pc
According to Brenda Kelly, chief market strategist at IG Group, a strategy of buying the ten ‘dogs of the FTSE 350’ at the beginning of the year and holding them for the first quarter has returned an average of 11.4pc since 2005. In contrast the average return from the broader FTSE 350 index over the same period is 0.75pc.
Read more Click here / www.trade4x.net

 

 

No comments:

Post a Comment