Learn How the Financial Markets Really Move

Many experts rely on other experts to indicate a general trend and what then follows is a herd mentality which is then reflected in articles and press reports that you read in your newspapers and elsewhere. Of course there are exceptions to this and some experts really do seem to have an incredible knack for calling the market whether it be for the market to move higher or lower.

Some experts rely on fundamentals which include the underlying strength of certain high profile sectors and companies in order to derive a feeling for the general market direction.

While other experts rely on technical analysis which attempts to predict certain trends believing that once a trend is established it often continues for a considerable time, allowing traders to profit from these trends.

There is no doubt that both approaches have their merits and often they can correlate making both fundamentals and technical approaches appear correct. However which would you opt for?

If you actually start to look at the technical side there is no doubt that history does seem to repeat itself over and over again leading to numerous opportunities to make money from the markets. Next time you take a look at a chart of any market, see if you can find a certain month or period of the year when the market rises or falls on a continuous basis, you may be surprised by what you will find.

One classic example is if you simply invested in the market every November to April period and repeated this year after year you would have truly outstanding returns. Another classic is trading or betting that the market on the first trading day of the month will close higher.

This strategy alone has a remarkable success rate for many markets including the Dow Jones with a total of 4000 points won over the last 13 years on just that single day.