4.8 • 1.2K Ratings
🗓️ 26 April 2023
⏱️ 34 minutes
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How long does it take a stock to get back to even after a large daily move down? And does the magnitude impact how long it takes the position to recover the loss?
We’ve all been in losing trades and wondered if we should hang on to the position for a little longer or cut it loose. So, to help answer the question, we studied the short-term performance of stocks and ETFs after different daily loss totals.
The study analyzed 324 assets over a 20-year period. We calculated the 5-day returns following single-day losses up to 5%.
See the full research report here.
Click on a timestamp to play from that location
0:00.0 | Contrary to the belief of many new traders, markets move both up and down. |
0:05.2 | Yes, it's true, markets can go lower, so naturally a question many traders ask, |
0:09.6 | is how long does it take to get back to even after seeing a large daily move lower? |
0:14.8 | And does the magnitude of these moves help us understand how long it takes to recover on average |
0:20.1 | from these losses? We'll help give you the answers to these questions with new research from |
0:24.9 | 324 ticker symbols in today's show. |
0:54.9 | Thank you so much for tuning in today and welcome back to show number 228 where we're going to be |
1:07.5 | looking at loss recovery analysis, super fun new research that we did that I think you guys will |
1:13.4 | really enjoy and really trying to answer the question, how long does it take to get back to even? |
1:18.4 | To get back to square one, to get back to par, to get back to zero, whatever you want to call it, |
1:23.1 | but basically looking at different ticker symbols, both stocks and ETFs and trying to figure out that |
1:28.8 | if we have these large moves lower or any move lower in the price of those symbols, |
1:35.0 | how long does it take to get back to where it started? And so that's we're going to look at today |
1:39.9 | and I know you're going to get a lot of really really good information that come out of this |
1:44.8 | podcast as always we've got charts and tables and things that you'll want to see over on the |
1:49.2 | show notes page. Optionalfa.com slash show 228 again that's just the number 228 optionalfa.com slash |
1:56.0 | show 228 but you can definitely 100% use today's research and today's analysis that we did to |
2:05.2 | incorporate this into your bots into your trading strategies to making more mechanical more systematic |
2:11.9 | I think improve your trading make smarter trades as you start to move forward so I think you guys will |
2:17.6 | enjoy this moving forward. One quick thing before we jump into today's research as a reminder |
2:22.8 | we talked about this on one of the previous podcasts but a lot of people have had some questions |
2:26.4 | about so we're reminding you again we do have a special promotion going on with trade air where |
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