I’ve been trading the forex markets for several years now, within my expertise December is always the most challenging month of the entire year to earn money. So why is this?
Well it is essentially because as Christmas approaches unpredictability in all the more significant currency pairs will consistently drop off rather well.
Because of this, you get plenty of slow moving lots of trading sessions that are extremely quiet really, with almost no price movement in the slightest.
To confirm this for yourself, find out the way that it drops during December, and you simply use the average true range index to your daily graph of the chief forex pairs.
I myself tend to cut back my trading action from the beginning of the month, and just take to the longer time frames about the very best high probability trades, before ceasing completely after we get to around the15th. I am going to then slowly return in the swing of things during the second or initial complete working week of the brand new year.
To compensate for the decreased gains in those times, the stock markets have a tendency to excel as we approach the conclusion of year, and that’s the reason why people frequently reference a ‘Santa Claus rally’. Whilst I invest in lots of top quality dividend stocks, normally, this is an excellent time to bank some gains and make some cash from several short term trades if any trades have started as an example, in October or November.
A strategy which has consistently worked for me would be to purchase in the months prior to Christmas, Tesco when they’re oversold and offer them in the brand new year, either after or perhaps before they declare their results for the Christmas period.
Anyhow I Have gone off track. And that means for those who have to can bring in some cash before Christmas, you need to prepare yourself and either cease trading pretty early on, or make changes to your own trading strategy.
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