Christmas and New Year are favourite times of the year. Despite the festive atmosphere, the financial markets continue to work and you can look for opportunities on how to make money on binary options and not get unexpected losses.
The USA and Europe are Catholic countries and the most important holiday will be Christmas – December 25th. New Year is also celebrated, but not as active as in the rest of the world. Therefore, it is advisable to close all open options until December 25 of this year. After this date, the market will no longer have large banks, investment funds, and other participants forming the price and trends. But trade in small volumes will continue.
If Christmas falls on Saturday or Sunday, then all open medium- and long-term options are recommended to close no later than December 23. If the broker allows it, and the profit/loss level is at an acceptable level for binary option for newbie’s, close the options early.
Be sure to specify the mode of operation of the broker for Christmas and New Year, especially since the pre-Christmas trading sessions end earlier than usual. Also, specify the mode of withdrawal of profits and the work of exchange offices of electronic currencies and banks. It will be unpleasant when there is a profit, and it is not possible to get it.
After Christmas and before the New Year, the stock market and Forex practically do not work – the volumes of transactions and trends are minimal, the market is made by automatic advisers and small speculators. It is difficult to predict and analyze anything in such a “thin” market, even a minimal increase in liquidity can cause sharp price drops.
On holidays, some binary trading platform can reduce the percentage of possible profit on the option or limit the expiration time. It is difficult to give exact recommendations on what to do in this case, it all depends on the particular broker, the date and amount of profit reduction. But if you decide to open an option, once again specify the conditions and available expiration dates, it may be worth staying out of the market.
Many “experts and analysts” convince binary options trader that it is impossible to open binary options until mid-February. Perhaps during these periods, it is difficult for them to “analyze” during the holidays, but in reality, it is not so bad.
In the first half of January, the releases are significant fundamental economic news and statistics, which, despite the low activity of market makers, lead to strong price fluctuations. On historical data, you can see strong price trends that occur after January 10th. And if the conditions of the options have not changed, the analysis confirms the possibility of opening; you can do this in January.
In the first 2-3 days after the holidays, we do not open large-volume options. Observation statistics show that the trends of the last 2-3 weeks of last year, especially on daily and weekly charts, in the first half of January begin to turn.
- Do not use any automated trading systems or free binary options signals until early February.
- Long-term open options are analyzed or closed again.
- From January 10, you can analyze the market and open options.
- In January, we reduce the average option amount and close them if possible when the profit level of 40-50% is reached.
- Daily and weekly options open according to the rules of strategy and money management.
- Monitor the level of profit binary options signals offered by the broker.