best months to trade occur just after summer, from September to December, is because these months represent a surge of trading activity after the. So, a trader might benefit by timing stock buys near a month's midpoint the 10th to the 15th, for example. Market timing is based on short-term price patterns and trying to pick market tops and bottoms in the course of a single day. The reason why the best months to trade occur just after summer, from September to December, is because these months represent a surge of trading activity after the summer holiday lull. What hours should I avoid? Best Hours to Trade, although there is always liquidity in each session, they are not created equal: there are periods when price action is consistently volatile and periods when it is muted. Friday - this is virtual half-day because trading is busy until 12:00 pm EST and then nearly dies down in activity until it closes at 5:00 pm EST. Best Day of the Week to Buy Stock: Monday. Important economic numbers from both continents are also released at this time.
The five good Months (Winter-Spring January, February, March, April, and May. At the beginning of the New Year, investors return to equity markets with a vengeance, pushing up prices especially of small cap and value stocks, according to "Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies" by Jeremy. The theory behind this maxim is that the summer months are characterized by sluggish performance or a loss. I have often traded during the summer and regretted. Sydney opens at 5:00 pm to 2:00 am EST (EDT). Because of the overlap and economic importance, this period represents the times of greatest liquidity and movement in the markets, so pay careful attention to them. European Session: 3 am to 12 noon EST. Trading EUR/USD and GBP/USD would give the best results during this overlap. August 2010 was also miserable for the S P, falling.5. Holidays (especially major holidays like July 4, Thanksgiving and Christmas) - all the big money traders are on holiday, so don't expect the market to move.