Saturday, January 14, 2006

Seasonal Patterns In The Markets

There are many popular beliefs about how to make money in the financial markets, some popular and some not. Here's a trading method that, though it ranks low in popularity, produces results that you can't ignore. By the end of this article, you will have a glimpse into the method and even have a concrete trading plan of how to follow it. All you need is one tool, something anyone could pick up anywhere, and it costs only a few dollars: a calendar. My focus is on seasonal patterns, mainly because people are creatures of habit and tend to do certain things at certain times, and this behavior affects the markets. There are quite a few of these seasonal patterns, some lasting many months and some only a day.

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