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Learn to watch stock cycles
and president cycles

Watching stock cycles can give you a trading edge, it`s about timing and timing is so important in building wealth.

Many stocks have there own patterns and cycles and seem to run up in certain months and if we can trade these particular months only and stay out the other months, we will increase our chances and at the same time lower our risk because we are not in the market all year and especailly the bad months !

There are short term cycles and long term cycles and below i will show some graphs of these cycles.

There is also the Presidential cycle and what happens each of the 4 years is interesting, i will show you a graph of this president cycle below.

Lets look at an example of what could happen by using this system.

If we was to trade Applebee`s stock and starting with $ 10,000 it would be only the months of october-april and by compounding the gains each year from 1989 to 2003 it would have a total profit of $229,151.00 and a percentage return of 2,292% which is an annual return of 163%

Here is another example of stock cycles, how about if we use Mc Donalds stock symbol " MCD " Its cycle is January to June, we start with $ 10,000 in 1968 until 2003 and we compound the gains each year, there were 36 trades and 29 were profitable 80% winning years. Total profit=$ 3,468,286, Percentage return= 34,683% and annualized return= 963%---WOW !

Can you imagine using stock options with this strategy ? long term options ( Leaps ) ?

Let`s explore this with 8 different stocks in a portfolio starting in 1998 until 2003 going through the worst bear market since 1932.

We will use Amgen,APPB,BBBY,CAT,GM,INTC,LIZ,WMT and using there particular cycle months and starting with $ 10,000 divided equally, thats $1,250.00 invested in each stock.

It turns out to be $ 30,000.00 approximately for 6 years and including the worst bear market where the Nasdaq lost 72% percent of its value, thats about 30% a year on your money, not to bad but watch what could have happened with options on the same stocks and the same time.

$ 10,000 grows to $ 1,320,000 and thats about a 13,000% percent return for the same period.

Of course with options its all about timing since they can expire worthless, thats why we use the certain best months for these stocks and get out of the market in the normal bad months.

Leaps work real well with this strategy, Leaps = Long Term Equity Anticipation securitys just another name for longer term options.

Learn about Leaps here click the link below.

>>>>>> Leaps <<<<< Click here <<<<<<



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