“Christmas and New Years” for financial market.
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We ho-ho-hope you’re enjoying the holiday season…
Is Santa Claus rally coming?
Historically, shares tend to rally during the last 5 trading days of the year and the first 2 trading days after New Year’s — a phenomenon known as the “Santa Claus rally”.
How are you trading through this holiday seasons?
You may be holding back and just seeing the market movement, or trading through the high volatility to earn more profits.
There are two points that we like to give to all investors to get through the holiday seasons happily.
“Santa Claus rally”
“Santa Claus rally” is just a theory according to the historical data of all Stock and Equity Index markets.
They do “tend” to go up for the holiday seasons somehow, it maybe because of psychological movements or just happened by accidents every year.
If you are trading Stocks or Indices, then you may want to take this into your consideration of your investment decision.
For your information, you can trade stocks, Indices, Commodities and also Forex with iForex, just by opening one trading account online.
Low Market Liquidity
Due to several financial markets closing for a few days during the holiday seasons, there will be some hours where you cannot trade certain financial instruments.
And also some investors may take holidays for the period.
This causes “Low Market Liquidity” in the market, and it of course leads to “High Volatility” and “Wider Spread”.
It is very important to know the fact, because you may not be able to trade in the normal trading conditions during the holiday seasons.
You can take advantage of the high volatility to profit more, or you can stay away from the “higher” risk in the market than usual.