Ramadan is almost over and the Eid holidays are coming soon. This year, the Indonesia Stock Exchange will have a week-long holiday (July 4 to 8). Thus, Exchange will be closed at 16:00 on July 1 and reopened on 11 July.
In order to enjoy both before and after the long holiday, investors must pay attention to the following:
1. Liquidity transactions usually decline toward the Eid holiday.
The average volume of transactions falls ahead of long holidays and reaches its peak in the H-3 before closing. This is especially true if there is no particular sentiment surrounding the market. If there is, then the transaction liquidity will be high enough to grab the last opportunity before the effects of the lost holiday sentiment.
2. Prices before and after the holiday do not change much.
Historically, price movement was of just under 1%. The first day is usually used by traders for market testing purposes, so they do not conduct important transactions. The continual trend is not even visible in the first week.
3. If you want to invest before the holiday, then be prepared to hold for a month.
Based on the JCI movement 4 years ago, when an investor buys in H-2 before closing, then s/he will earn an average capital gain of 2.4%, if sold one month after it opened.
4. Do not make important decisions in H-1 and H + 1.
It is not advisable for an investor to make important decisions in terms of transactions, such as holding long-term stocks, or portfolio shifting (changing the portfolio to see the developments taking place in the month of Ramadan). Short-term trading strategies often proved to yield good returns.
5. Have a peaceful vacation.
Once free of undesired transactions, have a peaceful family holiday without peeking at smartphones ever so often to check the news.
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