BEST STAGES FOR FOREX TRADING

A usual, throughout the year, there are multiple volatility changes.

And every year you will be able to find two productive periods for trading having in between just a smaller period of trading decrease.

Therefore, from January to May you will find yourself in the most profitable months for trading. Then, when vacation season lands, almost all the trading activities stop, after that, June, July and August are the slowest months for traders.

Later, there is the “volatile September” to “mid-December” period. December’s volatility fluctuations usually decrease with the holiday season, which is the reason only half of the month becomes a profitable trading period.

Take a break of trading during summer

How many times have you heard that popular saying that says “sell in May and go away”?

Well, worldwide, especially Europe, US and northern Asian countries, the market volatility is stable during summer. This is due the human factor; major traders also need vacations, which typically takes place somewhere between June and August, that is the reason why the activities resume in September, just when the vacation period is over.

Naturally, is not recommended to trade during summer, because the moves are unpredictable and the stock volume is, for obvious reasons, smaller.

 It is also associated with high risks. Consequently, take your time during summer, and then come back ready for the new trading season, to make new profits.

The autumn uprising and the Christmas siesta

The traders usually come back to their trading Jobs after summer has passed; subsequently, there is a “boom” during early autumn.

Hedgers are back as other business areas are back to work too. This means that fall is, without a doubt, the best time and stage of the year to trade Forex. Trading normally maintains its impetus until mid-December with its decrease of activities similar to what happened in all the summer months.

Then, we have Christmas, this is freezing trading-wise as well as the next few weeks after it; don´t worry, traders are also enjoying the holidays.

But don´t feel dizzy, everything is back to normal in the second half of January.

After all that period, from January to May, you will find yourself in good months for forex trading and the players will be focused on profit-making before the summer arrives.

But, this time of the year does not beat autumn, it is just longer, therefore, you will get more chances and more opportunities for traders to apply their strategies and this way to make profit.

Summary

In the trading world there is just one important rule you should never forget if you are about to schedule your trading strategies for the year: when a major holiday is close, for example,  Christmas, or when vacation season comes, the markets have lower trading volumes.

This means that days like these tend to show fluctuations, for that reason if you are planning to do something during these dates; you need to check sporadically on the market so you can control the situation as much as you can.

Make sure to take the right decisions and to have a good strategy to work with.