Christmas is a strange time of year for trading shares. The weather is miserable, the days get shorter and shorter before seemingly disappearing altogether, and the whole world seems enveloped in a gaudy bubble of glitter, fake snow and fairy lights. However, December is the time when we see the annual Santa Claus rally, where share prices can suddenly increase in a short period of time. Hence, Christmas can be a good time of year for trading, as well as an odd one. Read on for tips on how to choose which shares to buy at Christmas.
The first action to take when you consider Christmas shares is to think about what stocks are tipped to do well in the early New Year. Hearsay and speculation might cause these stocks to begin to rise in value in late December. Reading financial reports and keeping abreast of political and economical news will help you in this endeavour. A small point: Whilst we are on the subject of timescales, take care not to start investing too early, leave the buying of Christmas shares until after the 15th of December to avoid mid-month price dips.
Just as importantly, when you decide which shares to buy at Christmas, don’t make any rash decisions. It is tempting at a time of year when we already spend a great deal on presents, food and entertainment, to make rash purchases and hope on a Christmas wish that doing so will have beneficial results. The best action to take, however, is to talk things through with your broker and ensure that you have all the facts straight before committing yourself. With any luck you will have made the right choice as to the Christmas shares you buy.