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Which Are The Best Months To Trade?

Discussion in 'Forex Discussions' started by painofhell, Mar 2, 2016.

  1. painofhell

    painofhell Content Contributor

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    What Are The Best Months To Trade Forex?
    Traders tend to trade Forex more on particular months, and stay out of the market in certain other months. Based on previous years’ trends, a trading year can be divided in thirds. It starts with the three most terrible months of summer, followed by the four best months of autumn, and end with four decent months of winter & spring.

    The Reason
    There’s a basic reason that drives the markets upwards or downwards in certain months and all forex traders should be aware of it. The trading volume dries up during any vacation period. Then, the months followed by such a period therefore witness comparatively more market activities.

    The Big Drought
    A 10-year analysis on the S&P shows that the markets remain the poorest in the three summer months – June, July and August. Most traders tend to sell their positions in May, and try to reinvest in a fresh positions once the summer is over.

    August Is the Worst Summer Month
    Most investors and Forex traders in Europe and the North America go on holidays during the month of August. This leads to lower trading volume and significant price actions. Just for example: August 2008 was misleadingly good for the S&P, advancing 1%.
    However, August 2010 was completely miserable for the S&P, dipping 4.5%,
    and August 2011 was also miserable for the S&P 500, plunging almost 10%.
    The month is characterized by sideways trends and momentum swings. However, the trend typically breaks right after the Labor Day holiday in the U.S., and most traders returns to active trading once again.

    Post-Summer Months (September-December)
    A surge in trading activity usually occurs just after the end of summer, and traders invest in fresh portfolios and positions. These three months therefore represent the best three months to trade in the year.

    Another Vacation Spot during the Second Half of December
    Forex traders once again stay away from the market in the second half of the December, and celebrate the Christmas Day and the New Year’s Day.

    Winter-Spring Action Still Better
    The January-May period returned a mediocre 3% on average for the last 10 years, and therefore still does better than the summer months, providing excellent opportunities for traders, continuously for the first four months of the year.
     
  2. Sharon Higgins

    Sharon Higgins New Member

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    Good traders don’t need years, months, days or even time to be fixed, it’s something they rarely worry because they know if they are good enough they can make merry in every situation. I always trade when I am certain and the easiest way for me is through following the trend, this is how one can work really well without any risk while to further help me is through my broker OctaFX since with them, I gain so much benefit with the rebate program that they got which gets me up to 15 dollars profits per lot size trade even with the losing trades too, so that’s something that makes me fairly comfortable with the work and allows me to succeed nicely.
     
  3. vic84

    vic84 New Member

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    There is no such factors in trading, market movement is turbulent and it keeps on changing positions all the time.
     
  4. Martha

    Martha New Member

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    Yes days ,months and years are not important in forex trading but only important having knowledge and skills. It depends on trader himself how he can manage his trade and how can he observe the right time to enter in forex.
     
  5. AwaberA

    AwaberA New Member

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    I guess we should talk not about month, but first Friday of every month)) Non farm is really second salary for traders) I use this economic calendar to trade news.
     
  6. Sharon Higgins

    Sharon Higgins New Member

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    I never really think about months and I don’t know how can anyone consider any month been good or bad like that? I believe everything depends on market situation, so suddenly a great month can turn into horrible or it can easily be opposite where a horrible month can turn into perfect time, so basically no one can ever predict that far. I do have favorite days like I enjoy trading on Friday or Early Month due to been a scalper, it also helps with OctaFX broker given they’re having cTrader platform and there I can also figure out which session is active and through that I can select which currency to pick to make easy profits and keeps the risk down for me.
     
  7. sininfinity

    sininfinity Active Member

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    NFP is not the only thing that moves the market. There are many other important economic data comes out each week and they move the market significantly.
     
  8. jologs

    jologs New Member

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    im not sure, but whta i usually do is deal with the market when i face it, but months after the long holiday, january and feb, these have lots of action in them, then are good months to trade.
     
  9. Sharon Higgins

    Sharon Higgins New Member

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    Yeah obviously, I believe NFP has not been generating the buzz that it had in past and if we notice NFP results from last few months, we will hardly see any movement of note, it’s FOMC that has overtaken it in terms of movement and violence, but we shouldn’t be really working on news only especially if we’re looking to succeed in long term. I prefer to trade according to the seen opportunity, so basically if I am able to spot that there is good chance for me to trade on this or that then I just go ahead instead of worrying about news. I get great support from OctaFX through their lovely rebate program that keeps me in stores even in toughest situations.
     
  10. Blossom

    Blossom New Member

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    I think, The worst months for trading are certainly the summer month of June. Just be very cautious during the summer period. Mostly i trade on second day of market because monday is too confusing for me.
     
  11. sininfinity

    sininfinity Active Member

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    May be but last friday NFP has made a considerable impact on EUR/USD. And I don't think one economic event is replacing another. They shape the sentiment and traders follow the price.
     
  12. Sharon Higgins

    Sharon Higgins New Member

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    That’s true but I just meant by average as in recent months, but I do agree that any news like NFP or FOMC, it’s always important to stay on our toes to make things work out. I do just that with help of OctaFX broker and that’s with their daily market news and analysis service, it keeps me updated with everything and I am able to manage things nicely. I am already preparing for 23th June this week, it’s obviously one of the biggest week for anyone and if we get it right t then we can make it really big, but there is a lot of risk. It’s why I prefer OctaFX broker with their lovely rebate program that keeps me safe and secure with having 50% cash back.
     
  13. funnyguy

    funnyguy New Member

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    For me the month of May is very good for trade as I got very much time in the month of May.
     
  14. Blossom

    Blossom New Member

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    Most forex traders are more successful during the late US, Asian or early European trading sessions.
     
  15. Sharon Higgins

    Sharon Higgins New Member

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    I believe every month is good if we are good at doing analyzing, but if we are not the brightest there then we will have obvious issues. I am currently working out with OctaFX broker where I am guided pretty nicely about everything, so that’s something that really helps me with trading better and allows me to perform at my best, it’s also to do with their amazing daily market news and analysis service, it’s provided by highly qualified team of experts and is fairly straight forward too, so that’s why I like it so much and leads me into high profits with ease and most importantly we don’t have to pay any fees for it which makes it so cool.
     
  16. Blossom

    Blossom New Member

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    Yeah right Sharon, It all depends on our analysis and working style with Forex. There is no specific month or time for having big profits with Forex.
     
  17. sininfinity

    sininfinity Active Member

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    I guess you are a part time trader. Care to explain why you have additional time during this month?
     
  18. Mistalee

    Mistalee New Member

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    There are no such best months for trading, it all depends on the market situations. There are many opportunities to earn in Forex Trading, we just need to identify that situation.
     
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