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Halloween Strategy

What is a 'Halloween Strategy'

A Halloween strategy is 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.

Explaining '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.


Further Reading


The Halloween indicator," Sell in May and go away": Another puzzle
pubs.aeaweb.org [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …

Halloween or January? Yet another puzzleHalloween or January? Yet another puzzle
www.sciencedirect.com [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …

The Halloween effect and Japanese equity prices: Myth or exploitable anomalyThe Halloween effect and Japanese equity prices: Myth or exploitable anomaly
link.springer.com [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …

Are stock markets really so inefficient? The case of the “Halloween Indicator”Are stock markets really so inefficient? The case of the “Halloween Indicator”
www.sciencedirect.com [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …

Market efficiency in the Greek stock exchange: the halloween effectMarket efficiency in the Greek stock exchange: the halloween effect
grafis.unipi.gr [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …

The Halloween effect: trick or treat?The Halloween effect: trick or treat?
www.sciencedirect.com [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …

The Halloween effect anomaly: Evidence from some Arab countries equity marketsThe Halloween effect anomaly: Evidence from some Arab countries equity markets
journals.qu.edu.qa [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …

The Halloween effect in European sectorsThe Halloween effect in European sectors
www.sciencedirect.com [PDF]
… 2 Collins Dictionary of Business Quotations describes it as an “anonymous stock market maxim.” 3 We consider the economic significance of a trading strategy in detail in the Appendix … VOL. 92 NO. 5 BOUMAN AND JACOBSEN: THE HALLOWEEN INDICATOR Page 3 …



Q&A About Halloween Strategy


What is the Halloween strategy?

The Halloween strategy is 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.

What are some other investment types that can be used during this time period?

An investor can invest their money into bonds or cash.

What are some credentials that Gordon Scott holds?

He holds several credentials including ASTD, ISPI, STC, and MTA.

When does a person use the Halloween strategy?

A person uses the Halloween strategy between May 1 and October 31.

How long has he been doing what he does for a living?

For 24 years.

What does Gordon Scott do for a living?

He is an active investor and technical analyst of securities, futures, forex, and penny stocks for 24 years. He is also a member of Investopedia Financial Review Board and the co-author of Investing to Win. He is a Chartered Market Technician (CMT).

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