Why do stocks fall before the Spring Festival every year?

Every Spring Festival, whether to hold stocks for the New Year or to clear out stocks for the New Year has become a question that many people have to consider. According to my observation, generally more people choose to sell stocks before the Spring Festival, so most of the stock market before the Spring Festival will If it falls, let me analyze the reasons and introduce which stocks to buy based on my own experience. The reasons why the stock market fell before the Spring Festival

1. People need money for the New Year

In China, the Spring Festival is the most important festival. Generally speaking, during this festival, no matter where they are, people will Try your best to return to your hometown. When I go home, in order to avoid others looking down on me, I usually express myself to the maximum extent. Everyone knows that when it comes to this, it is actually about using money. When smoking, you must smoke well, when drinking, you must drink good wine, and you must not give red envelopes to others. few.

With this set of rules, one can almost wipe out all the hard-earned money earned in a month.

Many people even pretend to be fat for the sake of so-called face. It is conceivable that people who bought stocks will choose to sell stocks before the Spring Festival, otherwise they will eat and drink whatever they want during the New Year.

2. There are many uncertain factors

The Spring Festival is the longest holiday of the year. Although the national statutory holidays are only 7 days, most units actually have less than 7 days of holidays. It will be longer than this. During the room period, there are likely to be some changes in policy, which will be concentrated on the first day after the stock market opens after the holiday. Therefore, there are many uncertainties, which is another reason for the stock market decline before the holiday. Suggestions for buying stocks before the Spring Festival

1. Selection of time

Generally speaking, I personally think that the penultimate day before the Spring Festival is the best time, because it is the only day to sell stocks. You can only withdraw money before the holiday, and even if you sell it on the last day, it will be in vain. Therefore, the stock market is generally stable on the last day before the holiday, and there will be no big fluctuations. Therefore, it is recommended to seize the favorable opportunity on the penultimate day before the holiday.

2. Choose companies that are doing well but have fallen too hard in the early stage

Some companies are doing well, but have fallen too hard before the holidays. Generally speaking, this type of stock It has the potential to rise and is likely to rise after the holidays, so it is recommended to choose this type of stock.

3. Choose funds traded in the securities market

Not only stocks can be traded in the securities market, but also funds and treasury bonds can be traded. These are as convenient as securities transactions and have better risk resistance. Investors who are not strong can also choose this investment method and use securities software to purchase funds traded on the stock market, which is not only less risky but also easy to buy and sell.

In short, you must be extremely careful when investing, because risks are everywhere. I think it is worth thinking about what stocks to buy before the holidays to celebrate the New Year. I hope you can refer to the above suggestions.