Simple Trading Strategy — 60% Of The Time, It Works Every Time

If you’re a regular investor, you’ve probably noticed that stocks go up on the first of the month.

As a recent example, all the major indices (S&P 500, Dow Jones, NASDAQ) crashed in September, rebounded for the first few days of October, and then crashed again.

Why is that?

Well, the first of the month sees an influx of new money pouring into the market via 401(k)s and retirement funds.

This increased buying boosts the entire market. At least temporarily.

Many traders know this, and use it to their advantage.

As James Altucher explains:

[The first is] probably the most important trading day of the month, as inflows come in from 401(k) plans, IRAs, etc. and mutual funds have to go out there and put this new money into stocks. Over the past 16 years, buying the close on SPY (the S&P 500 ETF) on the last day of the month and selling one day later would result in a successful trade 63% of the time with an average return of 0.37% (as…