{"id":2041,"date":"2021-08-28T19:09:23","date_gmt":"2021-08-28T23:09:23","guid":{"rendered":"https:\/\/tradeoutloud.com\/?p=2041"},"modified":"2021-08-28T19:14:27","modified_gmt":"2021-08-28T23:14:27","slug":"trading-the-month-end-the-profit-recipe","status":"publish","type":"post","link":"https:\/\/tradeoutloud.com\/trading-the-month-end-the-profit-recipe\/","title":{"rendered":"Trading The Month End. The Profit Recipe. What to trade and what to focus on…."},"content":{"rendered":"\n
The end of the month trading has a different vibe. Volume increases, institutions are hopping in the market, funds are making adjustments to their positions within the last 3-5 days to the end of the month and stock prices rise.<\/p>\n\n\n\n
Below is the performance of IWM into the end of 4 consecutive months May – End of August 2021. Notice the rallies that are happening at the end of the month.<\/p>\n\n\n\n
But who leads? What should traders focus on? The answer is SMALL CAP STOCKS The end-of-month phenomenon has a more pronounced effect on small-cap<\/strong> and low-priced stocks<\/strong>. Research shows that small-cap stocks have considerably higher returns on the last day of the month versus high-cap stocks. This finding is not considered a variation of the historical trend among small-cap stocks to outperform high-caps. Having said that, high-priced or large-cap stocks can also experience the end-of-month effect.<\/p>\n\n\n\n