Myths & Legends! The Santa Rally & More...

[ModestInvestor]

Hi Fellow Traders,

 

I’m sure we’ve all heard of them, the Monday Effect, the Santa rally to name just a couple. The trading perceptions that supposedly happen repeatedly every year, week or with an event such as Christmas or Holiday seasons.

 

I personally have found the Santa Rally to have some basis to it.  Even just simply buying the FTSE100 on the 1st of December and selling before the New Year should overall show a positive expectation. I believe the Monday Effect to also be marginally true, but the difference is so slim that it can’t be traded without any other indicators.

 

My question to you all is what trades like this do you have that happen over and over again? It could be something that you know to be true and rely upon, or It could be theories that you believe to be utter rubbish. The more ridiculous the better! As long as it’s tradeable on IG I’d love to hear them?

[Guest Captain]

Would it not be more effective to look at FTSE in the last 20 years and see how much money you would have made/lost from your Santa trade?

 

I once won a "stock investing" competition by simply buying all of the one-letter American Stock.  A, B, C, etc.

[ModestInvestor]

haha Captain that's amazing, I'm not sure I'll try that one myself though

 

Yes I did exactly that, well since 2000 and adjusted dates and works out at 90% success rate.

[ModestInvestor]

Bit late for 2019, but to answer the above questions I wrote an article: Santa Rally – Christmas Growth in the Stock Market