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Why Seasonal Trends

Seasonal trends
The stock market’s seasonal cycle is well known to investors and it can be very profitable for those who’ve paired it with a good money management. It helps investors to time their entry to buy only when certain period has been historically proven to be profitable than others. Some stocks have more seasonality effect than others. There are many reasons of why seasonal trends happen.┬áIt could be contract renewal cycles, earnings report, holiday spending, weather cycles and etc.

Seasonal trends are easy to understand and can be used solely on its own. If it is paired with fundamental analysis and technical analysis, the winning probability will greatly improve as well. Even though seasonal trends might not happen every year but with a good money management, investors can get out from the trade safely and within their acceptable risks.

With our 3-Month Hold seasonal report, investors can even invest like a fund manager by rotating their stock portfolio every quarter.
For example,
Jan to Mar : Invest in stocks from Semiconductor, Application Software
Apr to Jun : Invest in stocks from Healthcare, Waste Management
Jul to Sep : Invest in stocks from Biotechnology
Oct to Dec : Invest in stocks from Airline, Auto Parts, Trucking

 

 

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