The end of the calendar year, punctuated by the Christmas period can offer lucrative opportunities for traders.
What is known as the ‘seasonal trading effect’ is well noted within the city. It is term used to describe the historical tendency for financial markets to rise into the end of the year.
This effect tends to be most prominent in the second half of December.
The reasoning behind the majority of these gains being towards the end of the month comes as a direct result of the timing of the Christmas break. This helps to create the ideal trading conditions for the ‘seasonal effect’.
A market that has the potential to rise strongly is ideal for trading with binary options.
Why Does This Happen
There are a number of factors which can influence markets at this time of year.
• Fund managers and smart money know that historically, the end of the year is likely to show strong performance.
• As Fund and Professional money managers close down for the Christmas period, they re-balance their portfolios.
• The seasonal rise lowers the perceived risk of investment at this time which makes putting money into the market more attractive.
The result is a market where liquidity lowers and buyers have a greater control. This can create an environment that helps to force prices up.
While it is not a self fulfilling prophecy the odds stack up in the favour or a rise into the end of the year
Therefore if you are looking for some binary options signals to place over the festive period then, you may just have the market on your side.
So without further ado, here are the trades to place.
The statistics below are compiled for the UK FTSE 100 Index. The S&P500 does however exhibit very similar moves at this time of year if you wanted to look at this Index instead.
Weekly Trades
Monday 21st December
75% Statistical chance of the FTSE Index ending the week HIGHER
Monday 28th December
75% Statistical chance of the FTSE Index ending the week HIGHER
Daily Trades
Wednesday 23th December
80% Statistical chance of the FTSE Index ending the day HIGHER
Thursday 24th December
80% Statistical chance of the FTSE Index ending the day HIGHER
Tuesday 29th December
75% Statistical chance of the FTSE Index ending the day HIGHER
Of course please do remember that there are no guarantees in trading. Risks are always present and there is no guarantee that these trading these statistics will pay off.
However if you decide to trade the statistics as provided, you will at least have history on your side and the chance for some top option trades!
Good luck with your trading and have a great and Merry Christmas. :)
DISCLAIMER
The information provided above is produced on a best endeavors basis. We accept no responsibility for inaccuracies or any loss, liability or damages results from the use of the information provided above!