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Investing strategies as continuous rising (falling) share prices released

Author

Listed:
  • Manhwa Wu

    (Ming Chuan University)

  • Paoyu Huang

    (Soochow University)

  • Yensen Ni

    (Tamkang University)

Abstract

We argue that continuous rising (falling) share prices might cause herding behaviors due to investors’ sentiments aroused. To my best of our understanding, we argue that this study pioneers to explore the trading performance after continuous rising (falling) prices, which might contribute to the existing literature in finance. By employing the constituent stocks of DJ 30, FTSE 100, and SSE 50 as our samples, we reveal that contrarian strategies are proper for continuous falling prices instead of continuous rising prices. We argue that the results reveled might benefit for investors to trade these constituents’ stocks.

Suggested Citation

  • Manhwa Wu & Paoyu Huang & Yensen Ni, 2017. "Investing strategies as continuous rising (falling) share prices released," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 41(4), pages 763-773, October.
    • Handle: RePEc:spr:jecfin:v:41:y:2017:i:4:d:10.1007_s12197-016-9377-3
    DOI: 10.1007/s12197-016-9377-3
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    References listed on IDEAS

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    Cited by:

    1. Day, Min-Yuh & Ni, Yensen & Huang, Paoyu, 2019. "Trading as sharp movements in oil prices and technical trading signals emitted with big data concerns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 525(C), pages 349-372.
    2. Chien-Liang Chiu & Paoyu Huang & Min-Yuh Day & Yensen Ni & Yuhsin Chen, 2024. "Mastery of “Monthly Effects”: Big Data Insights into Contrarian Strategies for DJI 30 and NDX 100 Stocks over a Two-Decade Period," Mathematics, MDPI, vol. 12(2), pages 1-22, January.

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    More about this item

    Keywords

    Continuous rising (falling) prices; Momentum strategies; Herding behaviors; Contrarian strategies; Investors’ sentiments;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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