June is the Worst Month for all U.S. Markets

As we head into June, it’s good to know, historically, June and September are the worst months for all U.S. Markets. Why? Mostly it has to do with less volume. The stock market consists of buyers and sellers. The U.S. markets, for as far back as you go, have always increased, meaning the amount of buyers has outpaced sellers, driving the price of stocks higher and higher over time. That holds true overall for almost every year, but there are periods in the year where sellers may out pace buyers. June is one of those months because volume slows as people are on vacation. When so many people are on vacation and thinking of their families, they aren’t thinking so much about their stocks. Also, the market tends to rally going into holidays so it rally’s the end of May, like the market did in May, but volume will decrease after the end of May and stocks may generally decrease even though the market for the year will probably have a net increase. If the stock market is always rising over the long term, then, why do most, 95% of day traders fail?

I find that fact interesting. The stock market always goes up, but so many day traders lose money. Here’s another interesting fact. The markets tend to go up at night and down overall during the day. For example, the S&P 500 since 1993 has posted almost all of its overall gains after the market close and before the market open. During the day, stocks lost money. ??? Weird, huh. How does any day trader make money. Well, remember, the performance of any stock during the day is the net value of its start of the day price minus the end of the day price. If you bought the stock at the start of day and rode it to the end of the day, you would most likely lose money over time. However, if you buy the stock at daily lows and sell the stock at relative highs, then you’d make money over the course of the day, but it’s difficult if you’re riding something that mostly goes down all day. That’s where swing trading comes in. I day trade the stocks I also swing trade so I get the best of day time and overnight. I day trade the stocks that are worth holding to take advantage of the upswings, but If any goes south on me intraday, I hold them until they rise a few days later. It makes what you trade extremely important. Don’t trade trash.