A day trade with an average stock holding period of under 8 minutes might be most closely associated with which trading philosophy?
A) EMH
B) Fundamental analysis
C) Strong form market efficiency
D) Technical analysis

Question

Quizplus · Accepted Answer

Day trading with an average stock holding period of under 8 minutes is a short-term trading strategy that relies heavily on technical analysis. Day traders use technical indicators and chart patterns to predict short-term price movements in the market. This approach is contrary to fundamental analysis, which focuses on analyzing financial and economic data to determine a company's intrinsic value. EMH and strong form market efficiency suggest that all market information is reflected in a stock's price, thus making it difficult to gain an advantage through short-term trading.

A Day Trade with an Average Stock Holding Period of Under