Halloween Strategy
 |
Definition of 'Halloween Strategy'An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market until October 31, in order to increase capital gains. The Halloween strategy is based on the premise that most capital gains are made between October 31 (Halloween) and May 1, and that the other six months of the year should be spent investing in other investment types or not at all. |
 |
Investopedia explains 'Halloween Strategy'The Halloween strategy is closely-related to the phrase, "Sell in May and then walk away," referring to the six months between May 1 and October 31. This strategy is heavily based on the concept of seasonality, specifically that stocks perform better in the winter months than they do in the summer months. This strategy is contrary to the buy-and-hold strategy, in which an investor may ride out down months. |
Related Definitions
Articles Of Interest
-
Capitalizing On Seasonal Effects
We show you how to take advantage of periodic trends in the equity markets. -
Where's The Market Headed Now?
Whether up, down or sideways, learn about some of the factors that drive stock market moves. -
Seasonal Trends In The Forex Market
Uncover the predictable behaviors of some currencies throughout the calendar year. -
Investing Seasonally In The Corn Market
Each month can bring new growth opportunities, if you know where the right investment seeds are. -
Introduction To Stationary And Non-Stationary Processes
What to know about stationary and non-stationary processes before you try to model or forecast. -
War's Influence On Wall Street
Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common. -
Profiting In Bear And Bull Markets
There are many ways to profit in both bear and bull markets. The key to success is using the tools for each market to their full advantage. -
Looking Into Sin Investments
The stigma that a sin stock receives seems to be more concentrated among individual investors who are certainly entitled to avoid them. The overall market, on the other hand, seems to look favorably ... -
Invest With A Thesis
Writing down a thesis for every investment may seem almost too simple to be effective, but lessons from behavioral finance tell us that bias and fear of loss often cloud our views, even for the ... -
How To Calculate The Bid-Ask Spread
It's very important for every investor to learn how to calculate the bid-ask spread and factor this figure when making investment decisions.
Free Annual Reports