Monday, November 14, 2011
As trading goes, the end of the year is when positions are evaluated, losers are let go, winners kept and planning for the new year takes place. Tax planning is an important strategy often overlooked by the amateur trader but it's important now to evaluate your possible tax liability in order to take best advantage of saving. It is not true that loopholes are bad. What is true is that you only have to pay what you legally owe. So planning your tax is vitally important in order to keep the legal amount to a minimum.
Trading at this time period relaxes and is usually slow because many turn their attention toward holiday celebrations and family. Which also spells parties, travel and fun therefore it also means that people tend to lose their inhibitions as the winter solstice sets in. What would normally mean a pulling within, for many it's time to demonstrate goodwill, enjoy celebration of a good year and sharing abundance.
So as you look for traders at this time, traditionally many turn their attention to retail, travel and electronics and also credit which takes a seat along side of retail. Those who have not saved and wish they had will not hesitate to borrow when it comes to good will giving. Hence holiday shopping becomes important. Inventories are closely watched, and shopping malls and internet shopping sites are monitored for attendance daily.
You too, take a pause, reflect, review and plan the rest of your year. As a day, swing or short term trader, if you have reached your goal for the year, it is good to use this time to review your strategy, try out a new one, observe and study and plan your next year. It is also a good time for lessons, so why not take advantage of a few.
Happy Trading, Living and Dancing
The Daily Pick - $NDX
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Posted by Anni_V