As we head in to the year end with just 24 (US) trading days left of the year many tend to turn their attentions away from financial markets however traditionally this is a very active and profitable period for me in financial markets.
The power of Seasonality
For those new to the concept; various studies and academic papers, including those done by the Stock Trader’s Almanac show that the stock market has a very clear bullish and bearish period. The old adage “sell in May and go away,” is more than an old wife’s tale; with over 100 years of data backing up – the seasonal bias is more than random.
Professor Ben Jacabson, Abdullah Mamun and Nuttawat Visaltanachoti have an interesting paper on the subject see: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=784186
December whilst a shorter trading month is traditionally one of the strongest months of the year with the S&P500 moving up an average 1.8%.
We can use these seasonal tendencies to profit from financial markets by using Financial Spread Bets, CFDs, Fixed odds bets with a company such as www.betonmarkets.net or just buying Exchange Traded Funds (ETFs)
To learn more about how to profit from up, down and even sideways financial markets just go to http://www.winonmarkets.net Making Money from Financial Spread Trading 2013 edition by Vince Stanzione