Is 'PAIR TRADING' a good strategy to trade ????

• Now a days there is too much fluctuation and noise in stock market and hence it becomes difficult to predict the market accurately every time.
• To survive here one has to trade smart.
• Smart Trader trades for consistent profit and its very important for survival.
• For consistent profit one must have strategy. Strategy that gives the acceptable level of confidence.
• Among the many, One of the strategy is 'Pair Trading'.
• In which the two stock which makes the pair , will behave same in normal conditions.
• Here Pair Trader waits for abnormal situation to arise and whenever he finds such opportunity quickly enters into trade by buying the stock which is comparatively cheaper and selling the stock which is comparatively costlier. That way he is betting for  the situation to become normal once again.
• As soon as the situation becomes normal , pair trader books the profit.
• There are many reasons for abnormal situation e.g. news, financial results, domestic and global conditions,economy etc...
• In 'pair trading' also there are many strategy for finding the best pairs, for entry and exit from pair etc.... but one has to make and follow the strategy which gives a consistent profit.
• So is 'Pair Trading' a good strategy to trade??? yes, if it gives acceptable level of confidence and consistent profit in all market conditions.
• In short one must have POWERFUL STRATEGY to trade and execute it honestly.
• According to Morris Chang :

 " Without Strategy,

execution is aimless,

and

Without execution,

Strategy is useless.."