| | | Hi Trader, We've all heard it before...September is a bad month for stocks. Which leads to two important questions:
Why is September traditionally a bad month for stocks? And, more importantly... How can I trade with confidence and consistency during September? Dan Passarelli will be answering the second question in his next training: The 4-Step Process To Dominating Momentum Trades: Identifying and Exploiting September Market Trends. As to why September is traditionally a chaotic time of the year here are a few reasons: - Historical Performance: Statistically, September has shown weaker performance compared with other months in both U.S. and global stock markets. This pattern, often referred to as the "September Effect," has persisted over decades. While the reasons aren't fully understood, historical data have reinforced this perception.
- Seasonality and Market Cycles: Some believe market cycles play a role, with September marking the end of summer. Investors who were previously inactive during the summer months might return to the markets, leading to increased volatility as they rebalance portfolios or sell off assets ahead of the year-end.
- Tax-Loss Harvesting: September often serves as the start of tax-loss harvesting, where investors sell off underperforming stocks to offset capital gains for the tax year. This selling pressure can drive stock prices lower.
- Post-Summer Adjustments: After the summer, many institutional investors return from vacation, review their portfolios and often adjust positions based on year-end expectations. These moves can sometimes result in market corrections or volatility as funds shift in or out of stocks.
- End-of-Year Uncertainty: Investors may begin positioning themselves for the end of the fiscal year, often leading to increased caution or profit-taking as they prepare for potential market headwinds in the final quarter.
- Psychological Factors: Because September has historically been weak, there is a psychological bias that influences trading behavior. Investors might preemptively expect losses and act accordingly, creating a self-fulfilling prophecy.
But the good news is that no matter how this September market moves (it is an election year too), there are ways to win. And the better news is that Dan has a system for trading both positive momentum and negative momentum. After you attend this training, you'll be all set and ready to close out the month with winning trades. Let's not let the "September Effect" impact our trading this month, or ever again. Save your seat here. Good investing! T. D. Thompson
Founder & CEO
ProfitableInvestingTips.com P.S. During the training we'll talk about how the everyday trader and investor can time the market with precision and consistency regardless of direction. Don't miss it! | | | | |
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