BEST STOCK MARKET STRATEGY

This is for long term investment vehicles like mutual funds.


If you have a 401k plan or own mutual funds then this is a no brainer strategy. From November 1 to April 30th you move to stocks. From May 1 to September 30 you stay in money market fund. 

This strategy has always beaten the market. It keeps you in the moths that the market rises and keeps you out of the months that usually declines.

Invest at your own risk, this is not a endorsement to invest.
 below from forbes:

Stay In Stocks Or Sell In May?

Charles Rotblut, Contributor

“Sell in May and go away” is strategy that some investors and traders are likely contemplating right now.

The adage is based on the historically weaker performance of stocks during the May through October time period. Adherents shift from stocks to cash at the beginning of May and then invest back into stocks at the start of November.

Historical performance shows there are best and worst six-month periods for stocks. Jeff Hirsch at the Stock Trader’s Almanac calculates that the Dow Jones industrial average has an average return of just 0.3% during the worst six-month period (May through October) since 1950.

Conversely, during the best six months (November through April), the Dow has an average gain of 7.5%. Sam Stovall at S&P Capital IQ says the S&P 500 has risen by a mere 1.2% during the average worst six-month period, while rising 6.9% during the average best six-month period. (Sam’s numbers go back to 1945.)

Certainly, last year made selling at the end of the April seem like a prudent decision. From the end of April 2011 to the end of October 2011, the Dow lost 6.7%. Using the October 4, 2011, intraday low as the endpoint, the drop worsened to 19.1%.

FISCAL CLIFF

Last couple of days have been very volatile in the markets. All this talk about fiscal cliff has the markets going up and down like a mad man. Democrats not budging and republicans not giving way either has the market in a tail spin. 

Of course with volatility theres trading opportunities . Last 2 days have been very good trading for me. I was cautious and did a lot of trades that were all winners or break even. In the end I came way up. 

I believe in the end they will come up with a middle ground and the markets will stabilize and go up. There is a big gap on the chart to the upside that needs to be filled. With the year ending and the markets thinning, the moves will be more exaggerated.

I'm hoping or wishing 2013 brings a lot of volatility to the markets, for a day trader theres nothing more better than a volatile market.