Question
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Which months to avoid trade?
5 Answers
<p>If you are Trading trend following or range breakout strategy, then you shouldn’t avoid any event days, because usually volatility will be higher on these event days when the news is over, and market tends to move in one sided direction, which really helps a trend follower.</p>
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<p>If the markets opens with huge gap, say 3 % or more, then its better to trade stock specific on these days, then trading on directional index strategy, as the movement is going to be minimal throughout the day with the index.</p>
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<p>Generally, you have to match your trading hours to the hours when the international markets are open. You may search the time of the different trading sessions and adjust accordingly.</p>
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<p>Try to avoid the months of August and December, as most of the market makers stay in holidays.</p>
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<p id="isPasted">In trading, the months to avoid are typically defined by low liquidity (fewer participants) or extreme seasonal volatility. While markets are technically open year-round, these periods often lead to "choppy" price action, wider spreads, and false signals. </p><p><strong>1. The Summer Slump (June, July, August)</strong></p><p>This is widely considered the worst time for active trading, especially in Forex and European/US equities. </p><ul><li>Reason: Major institutional traders and "market movers" in the Northern Hemisphere go on holiday.</li><li>Effect: Trading volume drops, which can cause the market to "drift" sideways for weeks or experience sudden, unpredictable price spikes because there isn't enough liquidity to …</li></ul>
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