Greetings!
The Christmas holidays are a time when financial markets slow down, and traders and investors take a vacation, taking a cue from the markets.
What happens to the markets during the holiday season?
Traditional markets (forex, stocks, commodities) are closed on December 25 for Christmas, and trading closes early on December 24 (Christmas Eve). New Year's Day is also an official holiday. However, winter activity in the markets starts much earlier and lasts longer, as investors use this time to rest, plan, and prepare for the new financial year.
During this period, liquidity is significantly reduced and volatility falls. Speculators and investors often go on "vacation", leaving the market more susceptible to manipulation. Instead of the usual movements, the market can become monotonous, ignoring the usual patterns. 🎄
This applies not only to classic markets, but also to cryptocurrencies. Historically, during holiday periods, particularly December 23–25 and December 31, trading activity drops to a minimum.
What does this mean to you?
Should you stay active in the market during the holidays? The holidays are a great opportunity to relax, review your results, and set goals for the new year. During these days, the likelihood of trading ideas and setups being implemented is low, and markets can behave unpredictably. The start of a new year can also be volatile, and the first two weeks of January are often accompanied by market manipulation.
Don't forget about important economic data coming out on January 2, 2025: the unemployment report and the ISM Manufacturing PMI - they can affect the markets and add volatility.
Conclusion:
If you decide to continue working, be sure to adapt to holiday market conditions and reduce risks. Like holidays, markets can bring unexpected surprises. 🎁