Should Individual Investors Use Technical Trading Rules to Attempt to Beat the Market?

Coe, Thomas S.; Laosethakul, Kittipong
July 2010
American Journal of Economics & Business Administration;2010, Vol. 2 Issue 3, p201
Academic Journal
The article presents a study which determines the importance of technical analysis in equities market for individual investors. The study uses trading techniques such as Moving Average (MA), Relative Strength Index (RSI), and Stochastic Oscillator (K) to compare with buy-and-hold strategy from January 2000-June 2009. The results show that buying and holding stock strategy has gained an average of 4.47 dollars per share, and active trading strategies have more trades than passive strategy.


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