Interested in trading Black Friday? Read this

2019-11-26 | Simpler Trading Team

Black Friday is right around the corner, and it’s always a busy day not just for the average American stuffed from the previous night’s feast, but as well as the ever vigilant trader. So if you fall into either category or you’re just interested in the way a successful full-time trader tackles the wild market… read on.

Especially this year, with the insane volatility we’ve seen the past few months, Black Friday should shape up to be another interesting trading day!

A little bit of history as to “why” Black Friday is such an interesting day for the markets.

For starters, in the current era, the stock market isn’t open on Thanksgiving. Yes, even the markets sleep occasionally. Then it’s only open half a day on Black Friday (until 12:00pm Central). So there’s a limited amount of time, if you’re trading options, to make “money moves” in the market during this holiday time.

That in itself, makes the day always interesting.

It’s no different from when you’re used to running an entire marathon in a certain amount of time, but then for one specific day, that time is cut in half. Some people may choose to not run at all that day — that’s totally fine. As our Senior Managing Director, Henry Gambell, always says, “cash is definitely a position!” There’s absolutely nothing wrong with deciding you don’t want to trade on Black Friday.

But not everyone will decide not to run. There will be those (like many of us at Simpler Trading) that’ll decide to beat our own best time and run the marathon in half the allotted time.

So for those that fall into this category, Henry’s put together a step-by-step trading plan to help you tackle this interesting market day.

Read Henry’s Complete Trading Plan Here

Now back to the history…

If you’ve ever heard of the Great Depression this particular history reference will have some more backing. On October 24, 1929 the first “big day” of the massive stock market crash occurred. Many historians now refer to this day at “Black Thursday”. Then the next day, that Friday, the rally continued higher. However, when the news spread that the Dow closed down on October 24, 1929, the weekend was unkind to the market.

Fun Fact: Back then the markets were actually open for half a day on Saturdays.

What’s now called “Black Monday” rolled around… then the biggest event, which is also so creatively called “Black Tuesday” came, and the market absolutely crashed. This then set the world into over a decade of depression.

That was one of the first crazy market times associated with Black Friday.

Now to be clear, we’re in no way saying another Great Depression is coming, we’re just drawing several parallels to the market uncertainty that surrounds this day. It definitely doesn’t mean you need to sit on the sidelines, and plenty of people can find a pretty penny during this half-day.

Just go into the day prepared and with some additional research and knowledge (like Henry Gambells’ Trading Plan), and you should fare better than most.