The holidays often affect share prices, especially those in the retail industry as companies introduce new products/services during the festive season and people splurge on buying gifts for themselves, friends and family. The holiday season may be a jolly time, but it can be a stressful one for the unprepared stock trader.
Having automated stock trading systems can greatly reduce the work of analyzing which shares to buy or sell. Check out below for more stock trading tips to consider in making your trading activities a breeze, and most importantly, profitable, during the holidays.
1. Fully understand the functionalities of your automated trading system
While having an automated sniper trading system can practically provide you with real-time alerts of trading events, you’re still the one to decide whether to buy, sell or ignore. But that depends on the features of your system. For example, the Sniper Trader Friday Data Alerts provides exclusive, unheard-of insights from Wall Street experts through SMS and Email every Friday afternoon, so make sure you’re always connected online wherever you go with a smartphone capable of handling your trading app so you can instantaneously take action on this volatile opportunity for a big Monday win.
2. Compare historical share performance of potential stocks
Not all stocks perform the same during the holidays. It’s best to look into the pre-holiday performance of the stocks in the past five years to have a better outlook on which ones can be profitable during the holiday season.
3. Look into the insights of the Wall Street masters
Wall Street experts often provide insights on how a company is expected to perform during the holiday. They usually give opinions on whether the company’s new products/services can create hype or simply flop during the holidays.
4. Read mainstream news to know about investor expectations
The mainstream news can also provide insights on what products can become popular during the holidays. You don’t necessarily have to dive into the financial news. Often, regular news outlets publish stories that can boost investor expectations on brands and products.
5. Read press releases and blogs of industry groups and leaders.
Press releases and news from industry groups are also great sources of information, such as the press release of National Retail Federation disclosing that retail sales in the 2020 holiday season surprisingly increased 8.3% from the same period in 2019.
6. Remember that stock market changes isn’t just about the holidays
Other than people scurrying to buy gifts or creating hype over a brand, there are many other factors that influence stock prices during the holidays.
- Companies and traders perform year-end balancing i.e. buying undervalued shares, and thus, increasing its price later on; and selling profitable shares, and thus, pushing its price down in the process.
- Companies sell their stocks that are losing in value throughout the past years in order to claim capital losses in time for the end of the tax year.
- People go on vacation and are often away from computer, and thus, there’s less trading activities, and thus, there are low liquidity and low volatility in the market
- The absence of trading professionals (because they’re on holiday vacations) can cause erratic market changes because the ones in the game have less expertise.
Trading in the stock market can be an exciting activity if you know what to expect. Equipped with a reliable automated sniper trading system that delivers real-time stock alerts, as well as with the stock trading tips discussed in this article, you’ll definitely have a merry holiday ahead. Monster Trading Systems offers automated stock trading systems that deliver stock alerts and EFTs signals through SMS and email so that you can be on top of the game at all times.