Features of stock trading in summer that should be taken into account in a trader’s work
Exchange trading is a dynamic process that is influenced by various factors, including seasonal fluctuations.
Summer is a period when certain changes often occur in financial markets.
In this article we will look at the features of stock trading in the summer and what factors should be taken into account when making trading decisions.
Low market activity - one of the important aspects of exchange trading in the summer is a decrease in trading volume and liquidity.
Often the summer months are characterized by low market activity due to holidays and a decrease in trading volumes on the part of investors.
To control the spread, it is advisable to use the spread indicator , it will help you notice in time an increase in the fee for opening a transaction.
Major News Breaks – Despite low market activity, summer can be a time when economic and political news has a big impact on markets.
Corporate earnings reports, central bank decisions, macroeconomic data releases, and other news cause significant price fluctuations.
Traders should be attentive to news announcements on the economic calendar and remember to monitor news feeds.
Seasonal factors - summer can affect certain market sectors. For example, travel companies and summer clothing manufacturers may experience increased demand during this period.
In agriculture, the harvest takes place, which also affects the price of goods such as grains, sunflowers, and sugar. Therefore, it is worth taking these seasonal trends into account and analyzing the relevant market sectors.
Weather and Natural Disasters - Summer can also be a time when weather and natural disasters can impact stock trading.
For example, hurricanes, droughts, fires or floods may negatively impact certain market sectors such as agriculture or insurance. And this, in turn, will cause price fluctuations on the commodity and stock exchanges.
Excellent buying opportunities - low asset liquidity during this period often causes prices to decline.
It is in the summer that it is profitable to buy gold or other precious metals; you can also invest in companies related to passenger transportation, in the hope that after the summer holidays they will please their investors with profits and an increase in stock prices.
Despite the low volatility for some assets, summer is a fairly promising time for trading; many brokerage companies hold promotions to at least somehow stir up clients, so you should not miss out on new opportunities.