What seasons are not always optimal for Forex trading


There are not only important forex dates spread throughout the year, but also seasons that play a significant role in volatility and developments on the forex market. Experience shows that the summer months show little market activity, so that the saying "Sell in May and go away..." also comes into play on the stock exchange. Research shows that the summer months bring little return on many financial transactions, especially in August.

The reason is easily explained: many traders are on holiday, so there are fewer large fluctuations in the market. Long-term market participants prepare themselves early for these developments and sell positions from the portfolio before going on summer holiday. At the end of the summer, the positions are then built up again in order to profit from the so-called "year-end rally".

Special strategies for trading in the summer
Despite the low market movements, investors can also take advantage of the summer months and trade "range setups", for example. Fluctuations are not as strong and the change of direction is therefore not as intense. The same applies to traders who act intraday. The end of the summer slump in trading is usually heralded by Labor Day in the USA, the first Monday in September. This is when the last four months of the year begin for the most important gains.

Use autumn and winter for trading in the Forex market
After the summer months are marked with low trading activity, things start to look different from September onwards. Most professional traders return from their summer holidays, so the movements on the market become more intense. Of course, private traders also feel this, because they are suddenly confronted with higher volatility. The months after the summer are suitable for generating targeted profits, because the market participants are back and bring larger trading volumes with them.

December only conditionally recommendable
Until December, the foreign exchange market moves enormously, but this changes with the upcoming holidays in December. However, the breather is only for a short time, because as soon as the turn of the year has passed and the holidays are over, volatility returns to the markets. Now it starts all over again and traders have about five months from January onwards to generate profits on the Metatrader 4 Exness download, taking into account important forex dates. Of course, traders can also trade during the summer months, but it may not always be as worthwhile due to the low market movements.

Note: Even on holidays that are almost identical internationally (Easter, for example), there is a brief drop in trading activity on the markets. However, compared to the long summer slump, this only lasts a few days (as long as the holidays last).