As the Christmas holiday approaches, penny stocks are fairly quiet. I have just returned from a 3-week vacation in Asia. As much as I miss following the market when I go away, the truth is every trader needs to take time to relax and recharge every so often. Without this, most traders will burn out very quickly.

Trading can be stressful and at times a bit overbearing and that is why I always make sure to take at least one trip to a warm destination and one trip to a colder destination (for skiing), each year. I actually plan to start taking 3 warm trips each year and trade while I am on the go. That is the beauty of being a trader. You aren’t confined to staying in one area or working for a miserable boss and that is why I love my job.

A Break From Penny Stocks

This year I decided to travel to Hong Kong and Thailand. I had heard such great things about Thailand that I knew I had to check it out while I am still young. Extremely cheap prices, delicious food, and amazing scenery basically sum it up Thailand. Thailand essentially is like the wild west with an anything-goes vibe. The street corners are packed with people selling all kinds of pharmaceuticals, and crazy items like Japanese ninja stars and brass knuckles with razor blades. Bangkok is a massive city with more action than you could ever imagine.

   Koh Phi Phi – Thailand

Levels Night Club – Bangkok, Thailand

Hong Kong

Hong Kong, on the other hand, is more like New York City yet it’s even more crowded, a bit cleaner seemed to be somewhat cheaper, had amazing food, and more shopping locations than you could ever imagine. I also got a chance to spend a couple of days in Macau which is regarded as the Las Vegas of Asia and although it’s a fun place, I prefer to place my bets on the stock market where I know I have an edge in the market. None the less it was great to see this place.

Cos Way Bay (Time Square) – Hong Kong

Victoria Peak – Hong Kong

The next week will most definitely be quiet for penny stocks and the stock market as a whole. Usually, the market experiences the typical “Santa Clause” rally where most stocks rise on low volume for basically no reason. Then on December 31st tax-loss selling usually hits the market knocking stocks down a bit before the buyers come back in to scoop up the market down shares resulting in what is commonly referred to as the January effect.

It does not always play out this way but historically, this is what occurs more often than not. This upward bias in January usually causes an inflow of money into penny stocks and can set up some nice trading opportunities for those who are prepared with a market timing system. Until my next trip…