Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency (Part 1)

Buying past winners and selling past losers tends to earn abnormal profits over holding periods less than a year.

 

Jegadeesh, N., & Titman, S. (1993). Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency. Journal of Finance, 48(1), 65–91.