THE shopping season is not the same for all of us. For some, it’s a great opportunity to buy gifts for their loved ones. For some, a chance to boost their sales with well-crafted marketing campaigns.
What does the season mean for traders? How do they regard the discount offers? Do they shop much? Does Black Friday affect their trading? If yes, in what way? OctaFX conducted a survey to learn exactly that.
More than 1,100 respondents from over 60 countries took part in the survey in the beginning of November 2022. What is their opinion on Black Friday deals? Are they worth it? How many of them make spontaneous purchases? Here are the answers.
- More than 70% of traders find Black Friday deals good value, while only slightly more than 20% never buy anything during this season.
- 9% of traders compare the prices before and during Black Friday with varying frequency, highlighting the prevalence of an analytical mindset common among professional investors.
- Most respondents buy one or two items using Black Friday discounts, while more than half spend on those items more than they usually spend.
- Electronics, clothing, and household appliances are the three most popular types of products that traders buy during the Black Friday period, with the majority of them doing their shopping online.
- 7% tend to make spontaneous, emotional purchases, while 43.3% claim that they don’t. Still, even professional traders make those purchases. After all, we all should treat ourselves from time to time.
Common patterns among traders
72.7% of traders trade more in the financial markets on Black Friday.
OctaFX financial market analyst Kar Yong Ang expressed his opinion on why that is the case, taking into account the seasonality factor of the US stock market.
“Between Nov 20 and Dec 6 calculated over the past 15 years, the S&P 500 Index rose on average almost 3% and had an astonishing winning strike of 86%,” observed the analyst.
“This is an opportunity to take advantage of the two-way nature of CFD trades where one can look into the specific stocks such as Lowe’s Companies which rose on average by 7.45%. UnitedHealth Group is another stock to be monitored too.”
The majority of traders prefer to trade currency pairs with commodities and crypto being in the top three while stocks and stock indices enjoy less popularity.
Trading experience vs shopping experience
The survey conducted by OctaFX showed, among other things, several ways that the trading experience affects the Black Friday shopping experience and, possibly, the everyday lives of traders.
Those with a lot of experience in trading more often don’t buy anything on Black Friday, but those who do, buy more products during this period than less experienced investors.
While the majority of survey respondents compare and analyse the prices before and during Black Friday, those with the most experience most often do it always. This leads to the conclusion that trading experience is related to using analytical skills in real life.
Another finding from the survey was that those with less trading experience make spontaneous purchases more often. However, the level of experience does not directly affect the behaviour characterised by emotional purchases since all traders still make them.
The survey results also pointed out that more experienced traders tend to buy more media products, such as e-books and subscription services, usually associated with self-education and personal development.
The final finding was that the more experienced investors preferred trading currency instruments during the Black Friday season, while those with less experience favoured cryptocurrencies and stocks.
With experience in trading, there comes analytical thinking, the desire for self-development and a general understanding of how the financial markets work. Nevertheless, trading is not all about charts, financial instruments, and exchanges.
It’s about the special investor mindset that affects how traders make their everyday life decisions, be it shopping on Black Friday or long-term goals and plans.
In conclusion, while the shopping season is a period when we make perhaps the most emotional purchases, it is important to have a clear head and develop the cold, analytical mindset that experienced traders can boast of. – Dec 7, 2022
OctaFX is a global broker providing online trading services worldwide since 2011. It offers commission-free access to financial markets and a variety of services already utilised by clients from 150 countries with more than 12 million trading accounts.
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