Do You Realize How Holidays [affects|impacts[/spin] Stock Market Trading?

Globalization has brought many opportunities to the average trader who is looking for as many trading opportunities as possible. As few as 20 years ago, the vast majority of investors were confined to the major US markets to buy and sell their shares. Factor in the stock market holidays, and you were looking at a very rigid schedule for investing your hard earned money.

Of course, the largest global equity markets can be found in North America. Of the major stock exchanges, none are bigger and trade more volume than the NYSE, Nasdaq and Amex exchanges. Even the TSX trades at a lower volume when the US enjoys a holiday. Therefore, its important to keep in mind the days when the US markets are not open, and plan your trades around this.

There are many variables that make up a trader’s decision to buy or sell, and the timing of a holiday is one of them. Historically, some holidays are better than others for getting in before, and others suggest that its time to sit on some cash. Many larger institutional traders will close positions several days before a holiday, causing lighter trading volume around stock market holidays. This increases the stock market investing risk you’re taking on.

While we have covered other world markets in the past, for our purposes here, we’ll look at the holidays that impact the US stock exchanges.

<ul>
<li>New Years Day – January 1, 2008</li>
<li>Martin Luther King Jr. Day – January 21, 2008</li>
<li>President’s Day – February 18, 2008</li>
<li>Good Friday – March 21, 2008</li>
<li>Memorial Day – May 26, 2008</li>
<li>Independence Day – July 4, 2008</li>
<li>Labor Day – September 1, 2008</li>
<li>Thanksgiving Day – November 27, 2008</li>
<li>Day After Thanksgiving Day – Closes at 1pm</li>
<li>Christmas Eve – December 24, 2008 – Closes at 1pm</li>
<li>Christmas Day – December 25, 2008</li>
</ul>
As with many large companies, there are also some special rules that apply:
<ul>
<li>While not an official holiday, the day after Thanksgiving the markets close at 1pm</li>
<li>If the holiday that is being observed falls on a Saturday, then the market is closed on the proceeding Friday</li>
<li>If the holiday that is being observed falls on a Sunday, then the market is closed on the following Monday</li>
</ul>
<p>Some holidays change from year to year such as:</p>
<ul>
<li>Martin Luther King Jr Day falls on the 3rd Monday in January</li>
<li>Presidents Day falls on the 3rd Monday in February</li>
<li>Memorial Day is celebrated on the last Monday in May</li>
</ul>
Keeping track of the stock market holidays on the exchanges you trade on will help you become a better informed trader.