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The concept was to see whether traders could outperform thestock marketif they were given tomorrows headlines in advance.
Heres what you’re free to learn from what happened so you dontlose moneylike they did.
Participants received Wall Street Journal headlines for trading days that took place from 2008 to 2022.
Participants had access to these headlines 36 hours in advance of theactual trading dayof the study.
Elm Wealth designed this study to gauge how traders could perform if they knew major market news in advance.
They were not able to see dollar figures and asset prices during this study.
About 1 out of 6 participants went broke, and more than half of them lost money.
The Market Can Act Irrationally
The stock market doesnt always move in the direction people expect.
A company can deliver excellent earnings results only for its stock to endure a sharp correction.
Thats why most traders lose money.
A buy-and-hold strategy combined with dollar cost averaging can help investors deliver enticing long-term returns.
Both approaches can help you spend less time in your portfolio while outperforming day traders.
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