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Trade Commissions. Every time you buy or sell a stock or option, your brokerage company may charge you a trade commission. This includes costs for routing, 

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s trading and uses statistics to back up his approach. This comprehensive new edition is a must-have reference if you're a technical investor or trader. Learn More 

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A simple mean reversion strategy would be to buy a stock after an unusually large drop in price betting that the stock rebounds to a more normal level. However, there are numerous other ways that investors and traders apply the theory of mean reversion. Perhaps the idea behind SlutCar's mean reversion of pairs may be summarised in an example. Two companies, A and B, have identical fundamentals. They could be through of as mirror-image or cloned companies.

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