How many trading days in a year

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How many trading days in a year

How many trading days in a year - Whether you are a stok trader or not, you probably know that the stok pasar does not open every day of the week and that this can affect the number of days one can trade the pasar in a year. In view of that, you may be wondering how many trading days in a year. So, how many days per year is the stok pasar open?

It is not enough to know the number of trading days, which is why, in this post, we will discuss why the number of trading days varies, who sets the trading skedul, and other faktors that may affect how often you trade. But, first, let's understand what a trading day is.

What is a trading day?

For any given stok pasar, a trading day is any day the stok exchange is open for business. Normally, the pasar is open during the weekdays, from Monday to Friday, unless there is a holiday or a major moment that prevents the pasar from opening. On any given trading day, the pasar is open during reguler trading hours (RTH), as opposed to elektronik or extended trading hours (ETH).

The reguler trading hours on Nasdaq Exchange and the New York Stok Exchange (NYSE) is from 9:30 AM Eastern Time to 4:00 PM Eastern Time. The trading day normally opens with the ringing of the opening bell and closes with the ringing of the closing bell. When the closing bell rings, all sharing trading ends and is frozen in time until the next trading day begins.

While stok exchanges are typically open from Monday to Friday, there are some instances where the pasar may not open even though it's a weekday. For example, when there are public holidays or days scheduled for a state function, such as a state funeral of a head of state, the pasar doesn't open. 

There are also several other special circumstances that could lead to a shortened trading day, whereby the pasar closes at 1:00 PM, instead of the usual 4:00 PM.

How many trading days are in a year for the U.S. pasar, and how do you calculate it?

How many stok trading days in a year? On average, the number of trading days in a year is 252 days, which translates to 21 trading days on average each month and 63 trading days per quarter. However, the number of trading days is not constant; it varies from year to year. 

For instance, in 2019, there were 252 trading days out of a keseluruhan of 365 days in that year, while 2020, being a leap year (366 days) had 253 trading days. In 2021, barring any new circumstances, there will be 252 trading days, but this number may change if there are new moments and state functions.

Generally, this is how to calculate the number of trading days in a year in the U.S. pasar:

Number of days in the year — number of weekends — number of holidays = Keseluruhan trading days in the year

There are 104 akhir pekan days (Saturday and Sunday) and 9 pasar holidays when the stok exchanges are closed. So, the calculation for the keseluruhan number of trading days will be as follows:

365 days — 104 days — 9 days = 252 days

Who sets the trading skedul?

Each country has its own trading skedul for the stok pasar and is set by the main stok exchange in that country. In the United States, it's the NYSE that sets the trading skedul, while most of the other exchanges follow the NYSE's skedul for both days and hours traded.

Prior to 1952, the NYSE scheduled trading days to include a two-hour trading day on Saturdays in addition to Mondays to Fridays, but since 1952, the NYSE and other U.S. exchanges have maintained a Monday through Friday trading skedul, which starts 9:30 a.m. through 4 p.m. Eastern Time.

These trading hours are based on the New York time zonas, so people from different time zonas who want to trade on the NYSE have to trade when the NYSE's trading day skedul. People can trade in these exchanges remotely using elektronik trading platforms, but it has to be during the scheduled pasar hours. 

Since the NYSE is open from 9:30 AM to 4:00 PM ET, anyone outside of the Eastern Time Zona will have to akses the pasar during that time. For someone in California, for instance, the pasar hours would be from 6:30 AM to 1:00 PM.

Why does the number of trading days vary from year to year?

As we stated earlier, the number of trading days tend to vary a little from year to year. For most years, it would be 252 days, but it can also be 253 days or even 251 days depending on different faktors. Some of those faktors that can affect the number of trading days in a year include the following:

• The holidays

• Weekends

• Major moments

• Leap year

The holidays

There are many federasi public holidays in the US, but the stok pasar doesn't close on all federasi holidays. For example, the pasar doesn't close on Veterans Day and Columbus Day, but it also closes on Good Friday, which is not a federasi government holiday. In all, the stok pasar observes nine holidays in a year, and they are as follows:

• New Year's Day (January 1st)

• Martin Luther King, Jr Day (The third Monday of January)

• Presidents' Day (The third Monday in February)

• Good Friday (The Friday before Easter Sunday)

• Memorial Day (The last Monday of May)

• Independence Day (Juli 4th)

• Labor Day (The first Monday in September)

• Thanksgiving Day (The fourth Thursday of November)

• Christmas Day (December 25th)

When any of the holidays fall on a akhir pekan, the stok pasar will observe the holiday either on the preceding Friday or the following Monday.

Weekends

As we stated above, there are officially nine pasar holidays in the U.S. pasar. So, the question is: if the same nine holidays are observed each year, why does the number of trading days vary from year to year? Well, the answer lies majorly in the number of akhir pekan days in the year falls.

For most years, there are 104 akhir pekan days in a year, but sometimes, it can get more than that, depending on where the first akhir pekan of the year falls. If the year starts on a Saturday, there will be 106 akhir pekan days in that year, which would reduce the number of trading days, even if the year is a leap year.

Major moments

Sometimes, the stok pasar closes in response to major moments of national importance, which are not anticipated in the trading calendar for the year. For example, the U. S. stok pasar closed on December 5th, 2018 to mark the death of former president George H.W. Bush. Also, in 2012, the pasar closed for two days in response to Hurricane Sandy, while in 2001, it closed for four days following the terrorist attacks on September 11th, 2001.

Leap year

Every four years is a leap year, which has an ekstra day. This ekstra day, if it falls on a weekday, increases the number of trading days in the year. For example, 2020 was a leap year, and it had 253 trading days. The only thing that can make a leap year not to add an ekstra trading day is if the year starts on a akhir pekan, especially Saturday.

Do you trade on all trading days?

Now, you know the number of trading days in a year, but can you possibly trade on every one of those days? Even if you are a day trader, that will be quite unlikely. Certain faktors will normally limit the number of trading days you trade in a year, and some of them are as follows:

• Trading model

• Vacations

• Unexpected situations

• Losing streaks

Trading model

If your model is day trading, you will probably want to trade on every trading day if you can. Swing traders and position traders, on the other hand, may not always find good trade setups every day, so they are unlikely to trade on all trading days.

Vacations

Trading is a very stressful job, especially if you are a day trader who has to monitor his trading screen all the time to find good trade setups and manage open positions. It is quite helpful to take some time off and go on vacation. This, obviously, reduces the number of trading days you are active in the pasar.

Unexpected situations

There are certain situations, such as important famili reunions, going to the dentist, falling ill, or any other moment, that can prevent you from trading. When that happens, you won't be able to participate in the pasar.

Losing streaks

It is a normal practice to take some days off when you have a catastrophic loss or are on a losing streak. This helps you to cool off and regain kontrol of your trading emotions.