Chaos in the markets?

Why this month is so critical and how you can make it work for you [image]( Trader, We’ve all heard it before…September is a bad month for stocks. Which leads to two important questions: Why is September traditionally a bad month for stocks? And, more importantly… How can I trade with confidence and consistency during September? I’ll be answering the second question in my next training: [The 4-Step Process To Dominating Momentum Trades: Identifying and Exploiting September Market Trends](. (Just click to save your seat.) As to why September is traditionally a chaotic time of the year here are a few reasons: - Historical Performance: Statistically, September has shown weaker performance compared with other months in both U.S. and global stock markets. This pattern, often referred to as the "September Effect," has persisted over decades. While the reasons aren't fully understood, historical data have reinforced this perception. - Seasonality and Market Cycles: Some believe market cycles play a role, with September marking the end of summer. Investors who were previously inactive during the summer months might return to the markets, leading to increased volatility as they rebalance portfolios or sell off assets ahead of the year-end. - Tax-Loss Harvesting: September often serves as the start of tax-loss harvesting, where investors sell off underperforming stocks to offset capital gains for the tax year. This selling pressure can drive stock prices lower. - Post-Summer Adjustments: After the summer, many institutional investors return from vacation, review their portfolios and often adjust positions based on year-end expectations. These moves can sometimes result in market corrections or volatility as funds shift in or out of stocks. - End-of-Year Uncertainty: Investors may begin positioning themselves for the end of the fiscal year, often leading to increased caution or profit-taking as they prepare for potential market headwinds in the final quarter. - Psychological Factors: Because September has historically been weak, there is a psychological bias that influences trading behavior. Investors might preemptively expect losses and act accordingly, creating a self-fulfilling prophecy. But the good news is that no matter how this September market moves (it is an election year too), there are ways to win. And the better news is that I have a system for trading both positive momentum and negative momentum. After you [attend this training on Tuesday](=), you’ll be all set and ready to close out the month with winning trades. Let’s not let the “September Effect” impact our trading this month, or ever again. Save your seat [here](=). Trade smart, Dan P.S.: During the training we’ll talk about how the everyday trader and investor can time the market with precision and consistency regardless of direction. [Don’t miss it!]() [Profile Image] Dan Passarelli Market Taker Mentoring dan@markettaker.com (779) 324-2110 - Work Market Taker Mentoring respects your inbox. Manage your [email preferences](. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD) which can be obtained from your broker; by emailing investorservices@theocc.com; or from The Options Clearing Corporation, 125 S. Franklin St., Suite 1200, Chicago, IL 60606. The content on this site is intended to be educational and/or informative in nature. No statement on this site is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. An investor could potentially lose all or more than the initial investment. Past performance is not necessarily indicative of future results. ©Copyright 2008-2024 Market Taker Mentoring, Inc. All rights reserved. If you do not wish to be contacted via email, you can unsubscribe using this link: [Unsubscribe]( Unsubscribing from email notifications DOES NOT cancel your class, subscription or recurring payments. We recommend that current students do not unsubscribe from email notifications. If you unsubscribe from email notifications, you will not be notified on how to access the classes or subscriptions in which you are enrolled. Market Taker Mentoring, Inc. PO Box 117 Frankfort, Illinois 60423 United States