Can Such a Seasonal Trading Strategy Be Valid?
Keep in mind that the phrase, sell in May and go away,.
This strategy for trading stocks is about as easy as they come: Buy the stock market around Halloween (late October, early November) and then in May, go away.
Thats all there is.
Halloween strategy as an equity trading strategy can be seen as to completely sell stock portfolio holdings during the months of May to October and hold stock portfolios during the months.
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To learn more about the Halloween strategy, please read. Historical returns suggest that the premise of the Halloween strategy has been mostly true throughout the past-50 years that the months between November and April actually have provided investors with stronger capital gains than have the other months of the year. We do not claim credit for any images, except where noted. Today, it is common for salesmen, traders, brokers, equity analysts, and others in a b c d strategy in forex the investment community to leave their metropolitan financial centers in summer in favor of oases like the Hamptons in New York, Nantucket in Massachusetts, and their equivalents elsewhere. The Halloween strategy is a timing strategy; and most individual investors are not equipped to implement a timing strategy. Steam Halloween Sale is in full swing until November 1, and thanks to Paradox Interactive, its full of grand strategy games.
The same traders who leave for vacation in the summer return in full force in the fall. In truth, returns can be high (or low) any time of year and unless you know precisely when each will happen, a generalized approach to timing is based more on luck than anything else. . Therefore, the theory posits, it is prudent for investors to buy equities from November through April, and to focus instead on investing in other asset classes from May through October; although some who subscribe to this tactic say not to invest at all in the summer months. Many market watchers believe that investment professionals summer vacations do have an impact on market liquidity, and that investors aversion to risk during the summer months is at least partly responsible for the difference in seasonal returns. With Halloween fast approaching, Ive been spending a lot of time thinking about typical spooky things: ghouls and ghosts, vampires and werewolves, marrying off my daughter to an appropriate suitor and the best trade strategy to dominate the Aegean.