Stock market trading can be challenging. So people are always looking for a short-cut, an easy strategy to invest and trade stocks.
One of the most well-know of these “easy” strategies is the Halloween Cycle.
Because this stock market trading strategy is so well-known, it is worth our investigation. After all, sometimes stock market techniques work for no other reason than a lot of people are trading them. They become self-fulfilling prophecies.
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.
That’s all there is to it (though surely others have added their own additional rules as people always will).
If you look back enough years, there has been some historic evidence that this may not be a bad strategy. However we must keep in mind several factors:
- Past performance does not guarantee future results (how many times have
you heard that?!).
- Market dynamics change from time to time.
So the question stands:
Is this a good, simple, easy stock market trading strategy you can use without knowing anything else about trading or investing?
Here’s a video where we investigate that question with a few examples from recent history.
Thanks for participating in this discussion and please leave your comments below.