What is December like to trade? You hear varying opinions from traders saying it’s not worth it, people don’t trade in December they just play video games, market is set free by the banks for the retail crowd to go nuts, etc. etc. If it was anything like my August’s trading, then I may just go skiing for the whole month 
This question comes up every year. I wrote about it on my blog last year: Trading During the Holidays
At times, however, the light volume serves to create an environment where very rapid movements can take place. This can be loads of fun, and quite profitable for the trader ready and willing to go along for the ride.
Any examples? I presume that type of trading would suit some breakout trading but what causes the rapid movements if there are less institutional traders in the market?
EUR/JPY in Dec of 2000 was an amazing ride. I don’t remember the drivers, but that thing just kept going up and up and up right through the holidays.
Keep in mind that data and news still comes out. Just because traders are taking it easy doesn’t mean the world stops turning.
I myself think to slow it down. And also why not getting a deserved break
If you’re going to be distracted by holiday parties and shopping then it’s a good idea to use the time to take a break from the trading action.
Good time for beginners?
Probably not because the tendency is for there either to be little price movement or a whole lot - zero volatility or high volatility.
Don’t forget about the ‘Santa Claus Rally’!!!
Do you (John) think we’re going to see one this year? (I’ve read various articles stating that it’s ALREADY begun i.e. months ago)!!!
Regards,
Dale.
What is the Santa Clause rally?
Sounds interesting :}
It’s a rally in stocks into/around Christmas. But there’s also the January effect when stocks that did poorly the prior year (and were sold for tax purposes) rally. In fact, there are many “effects” in the stock market. 
As for whether we get a rally into year-end this year, I have my concerns. The stock market internals are not backing up the recent rallies - negative divergence.
I for one have been waiting since the 15th of JULY to short the S&P (according to my now preferred trading system)!!! (If NOTHING else I’ve certainly learned to have patience)!!! LOL!!! Every time it looks as though it’s going to come crashing down something happens to buoy it up again so I for one am waiting patiently for a ‘Santa Claus Correction’ (MY term)!!! LOL!!!
Regards,
Dale.