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
 

Enjoy this article? Hear more from Gatis Roze at

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Gatis Roze
About the authors: , CMT, holds an MBA from the Stanford Graduate School of Business and is a past president of the Technical Securities Analysts Association (TSAA). He is also the co-author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). A full-time investor for over 25 years, Gatis has taught sold-out investment courses throughout the Pacific Northwest and beyond since 2000. Learn More

Grayson Roze
is the author of Trading for Dummies (Wiley, 2017) and Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016). He has worked in the financial services industry for StockCharts.com since 2012, and now serves as the Business Manager for the company. He holds a Bachelor's degree from Swarthmore College. Learn More
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