Can you trade stocks of rival companies for higher returns?

  Mark Fi    December 30, 2015    1702

 

Stock trading should be done in an efficient manner so that you will manage profits regardless of the sentiment that prevails in the market. The stock market is prone for corrections and crashes. It will go through recessions and various kinds of financial cries. You should be able to make money whether the stock market goes up or down. In order to predict the performance of individual stocks, you should spend lot of time, effort and money. The same is not when you implement tips and tricks offered by experts. 

By undertaking pair trading, you will purchase and sell stocks in a different way. For example Google and Apple are rivals. They develop similar kinds of products. There will be great demand for Apple products for some period of time. The profits will go up. After some period of time, Google might perform better. If you are able to predict changes, you can buy stocks of one company and sell stocks of another company. The decision can be taken based on the reports and stock prices and other market clues. 

With the help of rival stocks pair trading the trading pattern will be analyzed. There are thousands of companies which are listed on US stock exchange. When you combine all the listed rival stocks, you will get many pairs which require to be analyzed. Rival Stocks offers user-friendly and robust software through which the analysis is made in a very efficient manner. The latest software product is made up of cutting edge technology. You will be able to notice top performing pairs in a very efficient manner. You can create your own portfolio so that there will be highest level of satisfaction. 

After picking up best pairs, you will be able to receive daily signals without any issues. The unique advantage with the software is that it will combine liquid stocks present on NYSE, the NASDAQ, the AMEX and the Australian Stock Exchange. Back testing can be done on each pair for up to 10 years. Crucial information related to each stock such as equity curve, winning rate, maximum drawdown, average profit can be obtained. You will get the equity curve of your portfolio. The signals will be sent to your email so that you can take a decision without any issues. 

Pair-trading which is also called as arbitrage trading is a secret which is implemented by advanced financial managers. It is a secret meant for hedge fund managers. Banks and large financial institutions had already taken advantage of it for many years. As the secret is revealed, you will be able to manage funds in a very efficient way and you can earn profits irrespective of the performance of the stock market. 

When you focus on liquid stocks of well-established companies, there is no scope for loss. When you purchase blue-chip stocks, you can trade very easily. The trade can be accomplished in short as well as long direction. It is possible to make returns in a short space of time.

Mark Fitz is the author of this article on pair trading. Find more information, about arbitrage trading here


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