Seasonality Studies and Books

Seasonality is the most underestimated stock market indicator among private investors.

Seasonality is well known from weather, tourism, and consumer behavior in retail, agriculture, or financial markets.

In professional studies analyzing stock, commodity, and foreign exchange market trends, researchers have examined seasonal patterns in detail.

Numerous studies have shown that seasonal patterns occur in price increases and volatility, which helps investors profitably use this behavior in their trading strategies.

Seasonality & Private Investors

But, seasonality is the most underestimated stock market indicator among private investors. Why is that? The answer is simple: You need a professional analysis platform to find and verify the seasonal patterns. For institutional investors, there are numerous but also very costly platforms. With our website, we want to allow everyone to use seasonal patterns profitably.

Seasonality indicator

But is Seasonality an excellent indicator for making gains in the stock market?

The following reasons and studies show how to use seasonality to grow your portfolio.

• Historical patterns: Markets often exhibit recurring seasonal patterns that repeat themselves over the years. This allows investors to make predictions for the future based on data from the past.
• Understanding demand: Seasonality often reflects changes in demand for specific products or services. This can happen due to holidays, weather conditions, or other factors. By understanding these fluctuations, investors can invest in industries likely to perform better during specific periods.
• Risk mitigation: When investors identify seasonal trends, they can adjust their portfolios accordingly. This can help minimize losses in times of predictable weakness and maximize gains in times of expected strength.
• Trading strategies: Seasonal patterns allow for the developing of specific trading strategies, such as the timing of entries and exits into the market. Investors can benefit from these patterns by taking targeted positions.
• Diversification: Understanding seasonal trends across industries and asset classes allows investors to diversify their portfolios and spread risk, creating a solid foundation for long-term gains.

Seasonality studies

The following studies are an excerpt from the seasonal analysis we consider for our platform and trading activities. The list shows several studies on seasonality in the stock markets. The studies analyze trends over months, days to weekdays.

And the best, with our Seasonality Analyzer, you can perform these analyses on your own.

• Several hundred search results for seasonal studies on sciencedirect.com
  on sciencedirect.com
  https://www.sciencedirect.com/search?qs=seasonal%20stock
• Seasonality in the Cross Section of Stock Returns: The International Evidence
  from: Steven L. Heston and Ronnie Sadka
  In "The Journal of Financial and Quantitative Analysis"
  Vol. 45, No. 5 (OCTOBER 2010), pp. 1133-1160 (28 pages)
  Published By: Cambridge University Press
  https://www.jstor.org/stable/27919559
• Stock Market Seasonality: International Evidence
  from: Mustafa N.Gultekin N.Bulent Gultekin on sciencedirect.com:
  https://www.sciencedirect.com/science/article/abs/pii/0304405X83900442
• Several seasonal studies from Marshall Nickles,
  from: Mustafa N.Gultekin N.Bulent Gultekin EdD on pepperdine.edu Business School
  https://gbr.pepperdine.edu/author/nickles_m/
• Agathee, U. S. 2008. Day of the week effect: Evidence from the stock exchange of Mauritius (SEM), International Research Journal of Finance and Economics 17: 7–14.
• Alejandro, R. C. 2006. Day of the Week Effect on European Stock Markets, International Research Journal of Finance and Economics 2: 53–70.
• Fama, E. F. 1956. The behavior of stock market prices, Journal of Business 38(1): 34–105. http://dx.doi.org/10.1080/13504850150504504
• Gupta, K.; Singh, B. 2009. Price Discovery and Arbitrage Efficiency of Indian Equity Futures and Cash Markets. NSE Research Paper
• Nath, Golaka C. and Samanta, G. P. 2003. Integration between Forex and Capital Markets in India: An Empirical Exploration. Available from Internet: http://ssrn.com/abstract=475822
• Sharma, J. L; Kennedy, R. E. 1977. A Comparative Analysis of Stock Price Behaviour on the B., London and New York Stock Exchanges, Journal of Financial and Quantitative Analysis 12: 391–413. http://dx.doi.org/10.2307/2330542
  
  

Seasonality books

If you want to delve deeper into the topic, you can find several books on Amazon.

Book Title	Link
Seasonal Stock Market Trends: The Definitive Guide to Calendar-Based Stock Market Trading	Amazon
The Little Book of Stock Market Cycles: How to Take Advantage of Time-Proven Market Patterns	Amazon
Mastering the Stock Market	Amazon
The Profitable Truth About Seasonality: Breaking Trading Myths that Cost You Money	Amazon
Ultra-Reliable Seasonal Trades	Amazon
Seasonality Revisited: The Use of Irregular Seasonality in Quantitative Time Series Analysis and Forecasting	Amazon
The Harriman Stock Market Almanac 2018: A Handbook of Seasonality Analysis and studies of market anomalies to give investors an edge throughout the year	Amazon
Commodity Spread Trading - Take Advantage of the Seasonality: Volume 1 - Learn Spread Trading, the Best Way to Trade Commodity Futures; Book for Experienced Traders and Beginners.	Amazon
Seasonality: Systems, Strategies, and Signals	Amazon
Seasonal Concepts in Futures Trading: Turning Seasonality into Profits	Amazon

Summary

Seasonality affects almost all areas of finance.

Numerous studies show that recurring price patterns occur in various financial areas. From good experience, there are even more seasonal patterns than described in the studies. Individual stocks offer high-quality recurring patterns.

With our platform, you can profitably use seasonal patterns to grow your portfolio.