W&W Wealth Management

No, The Average Stock Holding Period Is Not 11 Seconds, But ….

martinwo
Publish date: Tue, 17 Jul 2012, 02:22 PM




If you are HFT (high frequently trader), yes, you only hold the trade for 11 seconds. But for most of us, especially for those traders in US according to a US Statistics from www.cross-currents.net, the period is definitely less than 6 months. Yes, it is 6 months for a typical holding period.

What about for the Malaysian traders here ?

This is quite true also for Malaysian traders. More and more traders than we spoke to are holding less than 6 hrs. Some wud not hold longer than 3 mths. The brokers in town are happy with this arrangement – meaning more turnover, more income for them. Many analysts are recommending to hold lesser period and if you are research chartist, preferable intra-day.

It is very sad now as we dont see many longer term investing or trading.

- Martin -

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