Tag Archives: Learn To Trade Stocks

Is Pair Trading Viable in 2024?

In the fast-paced world of quantitative trading, the viability of stock pair trading remains a hot topic. While some classic pairs trading strategies have seen diminishing returns, recent research highlights new opportunities, particularly among ETFs. Read More →

How to Handle Trading Losses: Trading Psychology Vol. 1

All trading, and by necessary extension pair trading, is challenging and not for the faint-hearted. Large losses or a string of losses, especially if trading at excessive size, can devastate your capital, and with it you confidence and ability to continue.

 
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Understanding Pair Trading Risk Management: Stop Losses, Sectors, News & Fundamentals

Pair trading is a sophisticated investment strategy that requires meticulous risk management to succeed. This blog post delves into key aspects of pair trading risk management, focusing on stop losses, sector considerations, news impact, and fundamental analysis. Watch our short video here, extracted from our acclaimed four-hour Video Training Course titled How to Successfully Pair Trade Stocks

 
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Pair Trading Risk Management: Position-Sizing

Stock pair trading is a sophisticated investment strategy that involves matching a long position with a short position in two stocks with high historical returns correlation, cointegration, and fundamental similarity. Effective risk management is crucial to success, particularly in the area of position-sizing.

 
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Our 2024 Power Picks: Top 60 U.S. Stock Pair Stars for Our January Vintage

Latest 12 Months’ Backtest Results and Returns Analysis

Elevate your stock pair trading game with PairTrade Finder®’s JANUARY 2024 TOP 60 U.S. STOCK PAIR STARS! Crafted from our relentless research and hours of grinding, this January Vintage isn’t just an addition—it’s THE game-changing weapon you need in your trading war chest. Why settle for average when you can dominate?

Curated Stock Pairs for High-Probability Pair Trading Signals

Stock selection universe, backtest parameters and pair selection filters can be found in detail here.

All paid-up subscribers can autoload these stock pairs into their Watchlists for free. These pairs will then immediately begin calling high-probability pair trading signals you can analyse and trade as you see fit.

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Pair Trading Software: A Smart Way to Trade Stocks

If you are looking for a stock trading strategy that can reduce your risk, increase your returns, and take advantage of market inefficiencies, why not consider pair trading? Read More →

Unleashing the Power of Equities Pair Trading: Exploring Cointegration and Expected Returns

In the world of trading, where opportunities and pitfalls abound, equities pair trading stands out as a strategy that offers unique advantages. For intermediate-level traders with a solid understanding of trading and basic mathematics, employing the cointegration method in stock pair trading can unlock a world of potential gains. In this article, we delve into the benefits of equities pair trading using the cointegration method and explore the likely expected trading returns based on the latest academic research focused on S&P 500 stocks.

Understanding Equities Pair Trading

Equities pair trading involves selecting two correlated stocks and taking positions based on the historical relationship between their prices.

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Trade of the Month MAY 2023

The power of stock pair trading is long proven in the investment world, where it is valued for its ability to generate low-risk profits month in and month out, sometimes on a weekly basis. Read More →

Learn to Trade Stocks Like a Professional Hedge Fund Trader

The start of 2020 is a great opportunity to decide how to re-deploy your time and energy to meet your goals.  If one of your goals is to develop a second or multiple income stream to allow you diversify away from reliance on a job, then why not take the time with us to learn to trade stocks for income?Learn to Trade Stocks

PairTrade Finder® PRO, the Leading Online Pair Trading Platform

Traders from around the world have downloaded PairTrade Finder® PRO over 6,500 times.  The platform has sold over 2,250 licenses and subscriptions to-date.  It has helped many new and seasoned traders alike achieve consistent profitability in their trading.

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Stock Trading Strategies: Long-Only Has Been Amazing…BUT

A Word on Stock Trading Strategies

Since Q2 2009, the most common of stock trading strategies – passive “long-only” i.e. just buy the S&P 500, would have delivered 348% or a 15.2% CAGR with dividends reinvested and without transactions costs or management fees (Source: https://dqydj.com/sp-500-return-calculator/)

But with the S&P 500 at or near a new all-time high, is the risk still weighted in your favour?  Perhaps, if you can hold 20-30 years.  But what about the next few years?

If you had held the S&P 500 from January 2008 until January 2009, the S&P 500 delivered a -35.6% return with dividends reinvested and without transactions costs or management fees (Source: https://dqydj.com/sp-500-return-calculator/)

The man in who made the quotation in the picture above is Larry Hite.

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