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When is the Best Season of the Year to Trade

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Hey, it’s Marina the trader chick, and I’m here to simplify your day trading. Today’s question of the day. When is the best time to trade? What is the best season of the year to trade? What time of the year?

So we’re about to find out. But first, make sure that you subscribe below and hit that notification button because I bring simplifying day trading hacks and tips to you weekly.

What is the best season of the year to trade?

That’s right. There are actual seasons of the year that are better than other seasons when it comes to trading.

And in this post I want to discuss when I believe is the best time of the year to trade based on my own personal experience of 10 years trading. 

Read on below to find out the times of the  year when it may just be best to stay out of the markets and not actively pursue trades.

In fact these slower times of the year for trading are actually great times to practice more discipline in trading but also to backtest more and develop your trading strategies and practice, learn and study.

And let me also add that no matter the season of the year, becoming a successful trader means having a solid grounding in day trading fundamental principles and knowledge of financial markets. And with this knowledge you will have the capability for being a profitable trader no matter the season! 

That being said I still believe that there are definitely times of the year that are much more ripe for trading opportunities. 

So let’s talk about it.

Summer

The Summer months are June, July, and August. And in my opinion and personal experience with 10 years of trading, I have found that this is the worst time to trade. 

Why is that?

Quite simply many people are on vacation in the summer months and there is a lot less liquidity, trading volume and volatility. And this also means less, much less frequency of trading opportunities.

Think of it like this, the market is made up of people. And there are people who have lives who are in the market.

So what happens during the summer months? Most people have kids. So that means vacation time.

So that means they take time off. So what does that mean in the market? 

It’s a lot fewer people. The volume is way less.

summer is not the best season of the year when it comes to trading
many people are on vacation in the summer months and there is a lot less liquidity, trading volume and volatility. And this also means less, much less frequency of trading opportunities.

It’s slower. And when there’s a lot less volume, what normally happens is a lot more indecision. Which is really not ideal for trading. I prefer to trade when decisive movements are made in either an upward or downward direction with volume and liquidity as well.

But what the Summer months are good for I have found, is that this is the best season of the year to practice my discipline because I know that the market is much slower. 

So everything that used to take me, like 30 seconds to a minute for trading setups now can actually take up to five to even 15 minutes. I know that sounds still really short, but for a scalper, which is what I mainly do, that could be long.

But again, it’s not about my specific timeframe. Even for people who are 1 hour or 4 hour traders, they’ll notice that it’s much longer because there’s not enough volume, and that’s normal.

So a lot of times, to be quite honest with you, enjoy your summer months. Go and do something fun. Don’t put that much into it during those months.

Fall/Autumn

Fall. In my opinion, Fall is the best season of the year for day trading. This is the best time of the year. Why do I say that Fall is the best season of the year for trading? Because this is when all the market participants i.e buyers and sellers are back from the summer vacation. 

Everybody’s renewed, probably spent a lot of money on their vacation.

And people are eager to trade. They’re ready to rock it in the market. So what are the fall months? These are September, October, and November.

And again, because I mainly trade the US market, every market is obviously going to be different.

But in the US, our holiday season technically begins around November, the end of November, which is Thanksgiving. I like to say that the week of Thanksgiving is when things really start to slow down.

So from September through that time, like one week before Thanksgiving, it is so much volatility. It is probably one of the best times to trade by far. So fall, autumn, that is a really fun season.

when is the best season of the year for trading
Once the holiday season comes around in December, nobody really wants to trade, so the market volume and volatility really goes down a lot.

Winter

So in December, you can have a couple of weeks in December. But once the holiday season comes around, nobody wants to do anything right. So the market volume and volatility really goes down a lot.

I personally am not a big fan of it. And again, vacation kids are off from school. People are traveling. It’s family time. But the cool thing about winter is that it can really pick up.

I’d say mid-January, but probably around the 10 January. That’s when everybody is raring to go. They just spent all that money on holidays and everybody.

So people are back in the market ready to make some serious money. And that lasts the majority of January and all February and all the way into spring.

Spring

This is a good time of the year, March and April. However, May we all know, May is starting to really slow down and become a kind of iffy.

But you still have altogether a good six months to even seven or eight months of the year that you can kill it. So the best time is fall and most of the winter and spring-summer.

Enjoy your summer months off guys ,enjoy December, the holidays because the market is – and the rest of the traders are as well.

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So, What is the Best Season of the Year for Trading?

Just to summarize and wrap things up, in my opinion the best season of the year for trading is Fall/Autumn which is in September, October and November in the US and the rest of the Northern Hemisphere.

Fall or Autumn is the best season of the year to trade because this is the time of the year when trading activity picks up again after the Summer vacation as traders return and refocus on trading the markets again.

But also Winter and Spring can be great times for trading also.

And I stated above you generally have a good 6-8 months of the year that is good for trading. But I still find Autumn to be the best time.

And when is the worst time of the year to trade?

That would have to be the holiday period which is the Summer months in the US i.e June, July, August and the Xmas holiday season which is in December each year. But even at these times you can practice, learn and study trading (when volume is low) and refine and simplify your day trading strategy to make it more effective when the high season rolls around again.

So that’s pretty much what I have noticed in over a decade of trading, the best times of the year to trade. What about you? When is your best season? Have you been keeping track? I’d love to know.

Tell me in the comments below and don’t forget to subscribe and hit that notification button because I am here weekly to simplify your day trading with awesome day trading. Hacks and tips.

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