I'm sure we've all heard the term "Sell in May and go away!" As the dog days of Summer hit us, we want to know....
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The MarketClub Team
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Greg
Thanks for your honest answer. 5% succeed in this business, and another 5% survive another day and keep learning to get better and succeed. That leaves a failure rate of 90%, of which the majority quite withing 2 years of trying.
"Success if Failure turned inside out"
I am with you. Profit, Loss, Profit, Profit, Profit, Loss, Loss, Profit, Loss, Loss, Profit, Profit, Profit........and away we go!
It's not a 'just-in-case' practice but a lifestyle. Coffee in the basement was all bought on sale as is all the food we eat. I routinely get 25% or so off the 'regular' price of nearly everything. That's a very good return on my food investment, and I haven't lost a thing, especially in a 1%- at- the- bank world. I know we will be eating and drinking coffee next week, but I don't pay next week's prices unless I like them, and those items join the parade in the basement. I remember the aflatoxin scare in peanuts in the late 70's. We had quite a bit of PB, but I bought the max at good prices the day I heard of it and waited for the ensuing price run-up to subside. BTW, we never make an emergency trip to a grocery store or fast food place because we don't have what we need at home. I'm a food 'investor' as well as an investor in the stock market. It has worked for us for over 40 years, Thanks for responding. I'll watch for coffee to go down.
Short positions, especially in the banks, has worked well for me this summer!
I like to learn about options, never tried before and the money I invested in stocks does not get return so far, may be I am suppoase to wait more?
I am new to this game and had never heard of that phrase. I started trading in april and did ok. May was a bad month and I did stupid stuff in June. But in July I have made more than I lost the first 2 months. Today I completed a trade that was my best one yet. So my account is back in the positive. So I must be learning. I'll keep trading in the summer.
It does not matter what month, if I can make money I will try.
Anyone want to answer the top three (3) reasons why summer months are tough on stock traders?
Thomas
HEY PENNY P.,I SHARE YOUR ANQUISH IN REGARD TO ALL THE PRICE HIKES WE ALL ARE EXPERIENCING,HOWEVER,IF YOU CAN REMEMBER BACK WHEN THERE WERE'ARTIFICIAL'CRISIS SITUATIONS WITH RESULTING PRICE HIKES SOME YEARS AGO MANY ITEMS IN THE SUPERMARKETS NEVER RETURNED TO PREVIOUS PRICES. SHAME ON THOSE RESPONSIBLE.I DO THINK THAT HAVING A YEARS WORTH OF PRODUCT IN YOUR BASEMENT FOR A " JUST IN CASE" IS REALLY TYING UP YOUR MONEY.I'M SURE OTHERS WOULD AGREE. KEEP YOUR CHIN UP.......THINGS WILL GET BETTER.
How long before I see the lower price in the grocery store? I have about a year worth in the basement for the 'long haul'.
I WOULD FEEL MORE CONFIDENT IF THERE WASN'T AN UNDUE CLOUD OVER THE MARKET DUE TO POLICIES PUT FORTH BY THE CURRENT WASHINGTON ADMINISTRATION. IF IT WERE NOT FOR THEM INTRUDING IN THE PRIVATE SECTOR I THINK WE WOULD HAVE A HEALTHIER MARKET PLACE REGARDLESS OF THE DOG DAYS OF SUMMER.......
RE BUD W - winning big with summer trading this year.
Nice to hear this market can be beaten. Perhaps BUD W could share an insight; was it Disciplined Trading based on years of experience in all types of markets, BUY and HOLD, or just no identifiable nervous system and simply - "BLIND LUCK"?
I trade Price/Volume not "Go away in May....". I got out in April. Trading with 15 years experience but this market too tough for me. "Money missed better than money lost!" Sure, but I am here to tell you, it still hurts!!!
By the way, anybody come up with a credible explanation ( other than the old "Bucket Shop Dive" last seen in the 1920s)of the "FLASH CRASH"? I did not lose a penny but still rattled.
I've heard this for years and have come to believe that it is sound advice which should be followed. However, this year, having discovered Market club, I found that by following Market Club's signals and selling on -100s has been a neat way of producing profits. I wonder how many readers followed the -100 signal for coffee and caught the almost 2000 point drop Wednesday night
May was a bad month, but this is an election year. What's his name will try to keep the mkt propped up
to make a good impression for reelection.
I got so fed up with all of this "funny money" pumping this market up along with this
awful volatility, I threw in the towel and put all of my life savings into an online
savings/CD's and I'm outperforming all of the major indicies. This is the smartest thing to do at this point. However, sometime in the non to distant future I believe we're going to
see the mother of all bear markets hit sometime in late 2011~2014 that will bring all of
this trash down to levels unheard of- The DOW down to 3000 or less the S&P 500 down to 250
or less as the US economy has all but calapsed and no one is hiring. You simply can not
print your way not of this mess. Greater Deppression #2 is about to unfold and will hit
the world stock markets and economies like a catagory 20 tsunami right off the Miami coast!
ALWAYS sell commodities in May. Ihave been trading over 20 years and I cannot recall when they have gone up in the summer. With all the turmoil I held gold and silver stocks this summer , thinking they would be safe, and look what has happened to them.Silver also tanked
I was always told buy low sell hi. I think now is the best time to buy in commodities and stocks with sound management. I do not look at forward looking statements companies put forth. I do look at volume over the last year and company news. I had trianed myself to look everyday at my stocks which are long term. The market will rebound but the key is what stocks will prosper. The market bounces evry hour and every day. Again buy and sale limits for short term would be OK just as long the volume is there.
Apparently, not enough of the market(at this time)adheres to this adage to make it self fulfilling.
Yeah, no kidding!
I have come to having more faith in using market stops based on up to 200 day moving averages except I do have an aversion although misdirected to having to pay taxes on the gains. And losses on bond funds is even worse because all of the yields re-invested are lost making it even worse since I already paid taxes on these yields. This presents a unique but I bet a very very common attitude from all but the most sophisticated investor. In our climate today, the whirlwind of the recession/depression and the politicians greed along with wall street, who is there to trust????? Nobody, the mutual fund companies should give enough information in simple terms every quarter end for their suggested scenarios to rebalance assets in an IRA. In these days too many people simply stay in for the long long term and get the horrible surprise of what became of what they invested in. Vanguard probably gives more information than most but it is not simplified and personal enough.
I did better this summer than the rest of the year, recovered all losts plus.
This summer has proved to be an especially difficult one. Hopefully for the good of the economy (and my trading account) the market will make up its mind here shortly.
The best comment I can make is lets all maintain our sanity as stronger markets will reveal themselves shortly!
Oh, why did I not walk away in May? Anyway, I'll do that now and return in September after having learned an expensive lesson for next year. Jean Rene
I'm not one to pay attention to seasonal bias even though there may be some credence to history. I will trade the setups I use whenever they show up. I trade a combination of credit spreads and long positions on indexes. April through June were not great setup months until the correction because of to quick and too much volatility at the pivots. A very classic bottoming setup showed up in June and the best rally in a couple of years followed. That was a nice 8 to 9% gain for the move in the RUT for those who were willing to stay in for the volatility at the bottom. We have already realized 3.5% on total capital in July. So, opportunity exists whenever, patience is the key.
I would also should have stop trading and gone away.
I would have been much better financially
thanks
nasir
This May was very different, as May 2, 2011, just happened to mark the announcement that QE-2 would end on June 30, 2011. Investing since March, 2009 has been "like shooting fish in a barrel". Simply be IN during the stimulus and OUT when there is no stimulus going on...... I find it insightful, that this time, just the mere announcement was enough to make the markets fold..... Sure doesn't look good to me..... The Bank index is still falling like a rock and that was one of the few indicators that warned of the financial meltdown which began in October 2007 in the Q's....
with the SPX swinging between the 1250-ish to the 1360-ish
since last February, I haven't had much luck.
My stops keep getting hit.
I should have gone away in May. I would have been better off financially. Thanks.