During elections, political parties typically make promises that can impact specific sectors such as infrastructure, healthcare, or technology.
Increased uncertainty during elections can lead to higher market volatility. Options trading strategies like straddles or strangles can be effective in profiting from price swings or hedging against unexpected market moves.
Investors often seek refuge in safe-haven assets like gold, government bonds, or defensive stocks during election periods. This strategy aims to protect capital during market turbulence.
Certain stocks can be directly influenced by election outcomes or related events. Identifying these opportunities and trading them based on election results or political developments can yield profitable returns.
Using technical analysis alongside political news and election polls can provide insights into market sentiment and potential price movements. Traders can leverage chart patterns and indicators to make informed decisions.