Choosing the time of year to invest in the stock market is one of the aspects that we must set ourselves to make profitable operations in the stock market with greater success guarantees. Because there may be a predetermined trend to channel selling or buying pressure. This is an aspect that can be verified historically through the series of quotes of the last decades. Specifically, since 1946 when the equity markets reached small and medium investors in a massive way and with full access to their positions.
It is analytically proven that there are a few months more than another that are prone to open positions and on the contrary also to get in liquidity before the downtrend of national and international stock exchanges. Knowing how to choose the date of the year for these movements can mean a lot of euros in the operations after all and therefore it deserves a little that we study this factor that can make us make investments much better from now on.
This factor is of such importance in financial markets that many financial analysts develop their investment strategies based on these somewhat special parameters. Because what it is about in the end is to avoid very unwanted situations on the part of small and medium investors. As for example, that they can get hooked in selected stocks. That is, with the listed prices far removed from the purchase prices. To the point that they will not be able to do with their investment portfolio unless they sell off the shares and lose a lot of money in the operations carried out in the equity markets.
What is the best time of year to invest?
This is the key question for investors who want to carry out the odd operation in the financial markets. From this very special approach there is no doubt that there are some months where there are greater guarantees of success in the formalization of the purchase of securities. Because in effect, buying shares in the first months of the year is not the same as formalizing it in the summer. The behavior of financial markets is significantly different and beyond the trend that could develop in them. It is a psychological strategy but without a doubt it must be taken into account when selecting our investments.
While on the other hand, it is also necessary to anticipate the bullish rallies that are generated in some months of the year. For example, the well-known Christmas rally where titles are usually appreciated around 5% or 10% on average and it is a very beneficial period to open positions. Because there are many possibilities that in the end we will have more money in our savings account as a result of this triumph in bullish positions and that we can take advantage of this situation with no problem or with the need to provide a greater financial culture.
Vacation periods are more dangerous
Another aspect that investors should assess from now on is that risks are always much more present during holiday periods. For a very simple reason to explain and that is because the volume of recruitment decreases with great intensity. This in practice means that the volatility in the price it is always much more pronounced. To the point that with very few securities you can move to the market value, in one sense or another. With more notable differences between their maximum and minimum prices and that can reach a divergence close to 10% and in some cases even higher than these indicative parameters.
In another vein, the summer months It is a good excuse to undo positions and enjoy the liquidity on vacation with family or best friends. It is a very useful tactic for small and medium investors with less learning in this kind of operations in the financial markets. Because it is necessary that you take into account from now on that it is not necessary to be invested in all months of the year. Not much less. If not, on the contrary, it is more advisable to be more selective in the choice of investment dates. Because there can be a lot of difference in euros between one or another investment strategy.
On the other hand, no one should be surprised that some months are more bullish (or bearish) than another. This is a reality that has been revealed throughout the history of the stock market. And therefore, you can take advantage of this opportunity offered by the equity markets. Where the most important thing at this time is to identify it correctly to carry out operations on the stock market. Both to open and close positions according to the law and the offer in the purchase and sale of securities of these financial assets, which is, after all, what is involved in these cases.
Time of year: the best days
Some of these techniques for buying stocks on the stock market can be very effective for our interests in the investment sector. To the point that it can be very decisive to carry out the operations of buying and selling depending on the day, month or time of year. As regards the best time of the month to formalize these operations, there are many strategies that we can apply from now on with the aim of making our operations on the stock market profitable.
Within the day of the month, it should be noted that the prices of the securities usually upload the first days of each month. Hence, if it is bought in the last week of the previous month and sold in the first week of the following month, the investor has many possibilities to make a profit on his investment in a relatively short period of time and, in a simple way to carry out the practice. Of course, this strategy is not infallible, but it is carried out with a certain regularity, as can be seen in the historical series of stock market values.
Within the same week
Regarding the days of the week where these operations can be carried out in the equity markets, it should be noted that Tuesdays, Wednesdays and Thursdays are, in general, stable, without large fluctuations. While on the contrary, on Mondays they have a clearly bearish profile and on Fridays, bullish. In the first of them because they are waiting for how will wall street open and, the last day of the trading session, because there are always movements on the part of the brokers before the weekend. There is also a trend that on weekends there is a tendency for liquidity to be stored in our savings account. This is the main reason why there are many late sales on Fridays.
However, in a way it will depend on the general trend of the markets variable income. That is, these behaviors will depend on whether the scenario is ultimately bullish, bearish or neutral. The combination of all these parameters will determine the buying or selling pressure on the part of small and medium investors. In this sense, and not to be mistaken, they are movements that depend on many factors that are of different nature. But what any case, they can give us guidelines about our behavior in these financial markets.
January a very bullish month
January is for many analysts, the first month of the year and is a reflection of what will happen throughout the year. In fact, they consider that the trend of the markets in the first five days of this month can be extrapolated to the end of the year. In those days, the bag is usually more bullish than bearishBecause the fund managers, who are the ones who make the markets move, invest a lot of the money they have available, since, as they are at the beginning of the year, if they make a mistake, they have time to rectify.
As a result of these reasons, it can be a very favorable month to develop our purchases in the equity markets. With the aim of undoing the positions before the end of the second quarter of the year. It is an investment strategy that rarely fails and that we can apply without excessive risk in operations.
Historically, it has been shown that this month of the year the buying pressure imposes a certain clarity on the seller and therefore we can take advantage of this widespread trend in recent years. Especially if the technical aspect of the affected securities is very favorable for taking positions. Like a clearly bullish trend is maintained. They are signs that will tell us that it is the time to take positions in equity markets.