The Traders Journal

How My Basket of Seasonality Stocks Bested the Market by 150%

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ImageIt’s one thing to blindly take my word when I claim the power of seasonality will enhance the probability of you making a profitable trade.  It’s another for me to present you with a basket of 6 stocks in my first blog of December which all had attractive historical calendar seasonalities and then in January to look back and see how they performed.  Here’s the link to my earlier blog:

http://blogs.stockcharts.com/journal/2013/12/some-seasonal-goodies-for-you-to-unwrap.html

The purpose here is not to toot my own horn.  The purpose is to encourage individual investors to enhance their trading tool kit.  Seasonality is a no-brainer enhancement.  You’ll find the Seasonality Tool at the bottom of this page.


 

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I’ll let the numbers speak for themselves.  If you bought one share of each of the 6 stocks I recommended at their opening price in December and then sold this basket at the close on December 31st, you would have outperformed the NYSE index by over 150% (the market was up 2.2% in December).  This basket of seasonally-strong stocks returned 5.5% in December. 

The truth is that there is no single investing Holy Grail.  The Holy Grail is when you stack these kinds of probability enhancers one upon another that you then begin to expand your investing batting average.

Trade well; trade with discipline!
-- Gatis Roze
 

Gatis Roze
About the author: , MBA, CMT, is a veteran full-time stock market investor who has traded his own account since 1989 unburdened by the distraction of clients. He holds an MBA from the Stanford Graduate School of Business, is a past president of the Technical Securities Analysts Association (TSAA), and is a Chartered Market Technician (CMT). After several successful entrepreneurial business ventures, Gatis retired in his early 40s to focus on investing in the financial markets. With consistent success as a stock market trader, he began teaching investments at the post-college level in 2000 and continues to do so today. Learn More
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