Amidst the pandemonium being caused by the state lockdowns, the calendar tells you it’s May. In normal years, many investors follow an old adage, which says, “Sell in May and go away.”
Especially this year, this old advice seems like a gamble, at best. There is a better way. But first, let’s look at where this saying comes from.
Information from Fidelity tells that this phrase “was born from what the Stock Trader’s Almanac calls the ‘best 6 months of the year.’ Historical data reveals that the top performing 6-month rolling period, on average, has been November through April. Hence, the saying investors should ‘sell in May and go away’—and come back in November.”
MarketWatch has their own view of what investors should do this year. They look at seasonal patterns of six-months on and six-months off. Then they analyze what has happened if there has been a losing winter and if it’s an election year.
Their takeaway? “Regardless, you will need to look elsewhere than this seasonal pattern if you want grounds for being bullish over the next six months.”
Investing using iFlip’s Algorithmic Intelligence (AI) makes it so you don’t have to worry about sayings like whether you need to sell in May and go away. Using automated trading software, AI analyzes the market daily and decides to buy, sell or hold the positions in your portfolios. This manages your risk and lets you grow your account.
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An article on Yahoo Finance shows how “Fisher Investments has seen that market timing strategies such as “Sell in May” tend to fail for several reasons. In the short term, stocks are unpredictable and volatile.”
“For long-term investors, rather than trying to time the market, Fisher Investments recommends time in the market: staying invested through all seasons and across the market cycle. Doing this successfully demands patience and discipline.”
See Related Article: Take Humans Out—Why Predicting Markets Gets Better When There’s No Human Involvement
Being human, you may have struggles with patience and discipline when investing. Having the best algorithmic trading software determine the trades for you, lets you lose less. Your investment can continue to grow.
iFlip wants to make investing even easier for you. Earlier this year, they introduced the best stock market app for android. You can download this mobile stock app at no cost and begin investing using AI.
You can remove the problem of human emotion from investing. In the palm of your hand or on your desktop, iFlip’s algorithmic trading software lets you stay invested through all seasons.
The mathematical algorithms will keep you in the positions that have shown it to be the best for your portfolio. Otherwise, your position will be sold. Your account will be held in cash until an appropriate opportunity is presented.