forex

Markets And The Seasons

The day before the Presidents day is the worst day and the day after the Easter is the worst day after. However, you should keep in mind that a lot of other factors also come into play and you have a lot of room for error. The next best holiday bets are the Labor Day and the Memorial Day because they fall before the first day of trading in September and June respectively.

You must have heard about the Santa Claus Rally? Most of the folks usually feel fairly good about themselves around this time of the year. The best time of the year to own stocks is the Santa Claus rally which for all practical purposes is the 17 day stretch from December 21 to January 7. This is the best time of the year.

FED tends to lower interest rates during holidays in order to go into the New Year with less of a worry if the economy is slowing down. There is a low trading volume which tends to exaggerate the trend if the economy is not doing well and is slowing down. However, when you are dealing with seasonality, you should keep these facts in your mind:

1) More and more people have real time access to information and larger amounts of capital than at any time in the past. The market is not longer static. The seasonal effect may get interrupted by other events.

2) At the end of the year, institutional investors want to make their results look as good as possible to their shareholders and tend to buy the stocks and so on. Institutional investors like mutual funds, hedge funds and insurance companies have become important players in the markets. So in case of an event free environment, seasonal tendencies may hold up fairly well.

3) The days of long term investing or what you call buy and hold are dead! Frequent market crashes have taught the investing public that investing for the long term is fairly risky. So there is more short term trading going on. These are the times for day traders and swing traders. With fewer people willing to hold stocks for longer periods, it is very difficult to predict seasonality.

4) The recent market crash was the result of CMO and Default Swaps bringing down the banks and Insurance companies in ways that had not been anticipated or foreseen by the analysts. Many had assumed that derivate securities are safe. Infact they have highly unpredictable tendencies. Derivates and outside the market trading activities can result in highly unpredictable patterns.

Then there is a change in demographics also taking place. With the aging of the population, the overall trend will be towards more income producing investments. So with everyone talking about the seasonal tendencies in the market, it reliability becomes less diminished.

Mr. Ahmad Hassam is a Harvard University Graduate. Try This 1500 Pips A Day Forex Signal Service! Know These Candlestick Patterns! Get a totally unique version of this article from our article submission service

Which Currency Trading Platform To Choose?

With currency trading becoming such a popular pastime there is an ever-growing number of currency trading platform solutions available to online traders. Because of the variations, he needs to have a clear idea of what makes a good system for your forex needs.

Stability, tools and information are definitely the key things that you need to look for in your currency trading platform. I recommend that you investigate each of these to ensure that you have a reliable, up-to-date and easy to use trading helper essentially. Remember you are using this to make your life easier and your trades more informed and quicker.

Prepare to be overwhelmed by most currency trading form software as there will be each huge number of helpful indicators to assist you in making trades. These can vary from the simple moving average is right through to using numerous charts and Bollinger/Fibonacci sequences to create the perfect signals. Remember that although this is overwhelming you can never receive too much information when making trading decisions.

Key points for most will likely be the level of a commission that they will have to pay for the platform, as this can vary greatly between services but will most likely be some kind of percentage on the spread. A rule of thumb as with most things is that you get what you pay for, as long as reviews of the system are good.

Different services will charge you different deposit rates so I recommend that you research into how much each service will charge you up front in order to cover the margin on your currency trading account.

I have found that one of the main benefit of using an online currency trading platform is that most fun a practice account be due to at the very least gain experience with their software, so that you don’t lose any money through your lack of knowledge regarding the tools and information that will be available to you.

Another option available to you is to utilise one of the many free trial offers that these types of services offer and get any month of service for free while you are evaluating the service that they can provide you.

Remember that we live in times where anyone can access the Internet from anywhere and starts trading. This is what attracts a lot of people i.e. the laptop on the beach image, and there are a lot of services out there that are willing to take your money and persuade you you can have this lifestyle. Please do make sure that you do a lot of research on them before you choose which one you’d like to use.

Read up loads MORE about a currency trading platform or a currency trading course once you take a gander at www.CurrencyTradingABC.com

Latest Blog Posts

RSS Feed

Feed yourself!
Subscribe to our blog RSS Feed

Get in touch

We will be happy to hear from you, no matter the subject. For contacting us please use our contact page or the info bellow.

Phone: +123456789
Mobile: +123456789
Email: office[at]blueglow[dot]com