I Read 26 Research Papers On Day Trading, Here's What I Found

Is day trading worth it? What's the truth about day trading? I've been skeptical of claims made by many advertising day trading courses. I attempted to keep an open mind as I reviewed recent research literature on the subject.

Even if there are opportunities, regardless of the market, I hope I made it clear this is a very high risk activity. While academic research doesn't always line up perfectly with reality, it seems clear that a consistently profitable trader is an outlier.

Studies Included:

The cross-section of speculator skill: Evidence from day trading, Barber et al
https://faculty.haas.berkeley.edu/odean/papers/Day%20Traders/The%20Cross-Section%20of%20Speculator%20Skill.pdf

Day Trading for a Living?, Chague et al
https://pdfs.semanticscholar.org/8ea6/9b546d55cfbdace3f4aa0ec367df808ab4a9.pdf

Did Trading Bots Resurrect the CAPM?, Andreas Park
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3515635
Momentum Focused Studies:

Highs and Lows: A Behavioral and Technical Analysis, Mizrach/Weerts
https://www.econstor.eu/obitstream/10419/31262/1/566304589.pdf

The predictive power of price returns, Caginalp/Laurent
https://www.pitt.edu/~caginalp/Paper65.pdf

Study of Predictive Power of Moving Averages as a Tool of Technical Analysis, Bahl
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3037580

Factor Momentum and the Momentum Factor, Ehsani/Linnainmaa
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3014521

Short-Term Momentum, Medhat/Schmeling
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3150525
Studies on less efficient markets:

Momentum and Contrarian Effects in the Ukrainian Stock Market: Case of Daily Overreactions, Plastun et al
https://www.researchgate.net/publication/339155320_Momentum_and_contrarian_effects_in_the_Ukrainian_stock_market_case_of_daily_overreactions

Momentum Effects in the Cryptocurrency Market after One-Day Abnormal Returns, Caporale/Plastun
https://ideas.repec.org/p/ces/ceswps/_7917.html

Technical Analysis and Cryptocurrencies, Hudson/Urquhart
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3387950

Technical Trading: Is it Still Beating the Foreign Exchange Market?, Hsu et al.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2765673

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The information discussed on this channel is for educational and entertainment purposes only. It should not be considered advice. Please do your own research and I encourage you to seek professional tax, legal, and financial advisors, before taking any actions or making decisions.

#daytrading #stockmarket #speculation

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