Santa’s Trading Checklist: The Essential Guide to Smarter December Trading
December is one of the most unique months in the trading calendar. With thinner liquidity, shifts in market behaviour, and year-end flows shaping price action, traders need to stay sharp and structured.
Why December Trading Demands a Checklist
Having a reliable trading checklist not only improves consistency, it helps you avoid emotional decision-making and remain disciplined during one of the most unpredictable periods of the year.
Inspired by Santa’s habit of checking his list twice, here’s the ultimate December trading checklist to help you navigate the final stretch of the year with confidence.
1. Trend Check: Identify Market Direction Before You Act
Before entering any trade, always ask: Is the market trending upward, downward, or ranging?
Understanding trend direction helps you:
- Trade with momentum, not against it
- Avoid false breakouts during thin liquidity
- Make smarter Hold-or-Trade decisions
Santa’s Top Tip:
Always check the bigger picture first, even Santa starts with a bird’s-eye view. Look at higher time frames (H4, Daily), then zoom in for precise entries.
2. News Scan: Avoid Getting Caught by Surprise Events
December may feel festive, but market-moving data doesn’t stop, even when some markets operate on reduced hours or holiday schedules.
Keep an eye on key releases such as:
- Interest rate decisions
- Inflation updates
- Employment reports
- Unexpected holiday-week data drops
Why does it matter? In thin December liquidity, even minor news can create outsized moves, sudden spikes, and whipsaws.
📅 Stay prepared:
Check out our Economic Calendar to stay updated.
Santa’s Top Tip:
Check the news twice, surprises are great for gifts, not your trades.
3. Volatility Check: Know Whether the Market Is Calm or Reactive
December volatility behaves differently, and it can catch traders off guard. With lighter participation and shifting year-end flows, you may see:
- Faster spikes and sharper reversals
- Wider spreads during quiet sessions
- Sudden moves around minor news
- More “false starts” on breakouts
Why does it matter? Understanding volatility helps you size positions correctly, set realistic stops, and avoid getting pulled into noisy market conditions.
Santa’s Top Tip:
If the market’s dancing like Christmas lights, tighten your risk.
- High volatility = smaller positions, wider buffers.
- Low volatility = wait for clean, confirmed setups.
4. Risk %: Protect Your Capital First
Before you enter any trade, define exactly how much of your account you’re willing to risk.
Standard guidance: Risk 1–2% per trade.
But in December’s unpredictable conditions, many traders go even lighter:
- 0.5–1% risk
- Smaller position sizes
- Reduced exposure to correlated pairs or assets
Why does it matter? Lower liquidity and sharper moves make capital protection more important than chasing opportunities.
Santa’s Top Tip:
Know your risk before you enter, not after the market moves.
5. Stop-Loss Placement: Protect Every Trade Before You Enter
A stop-loss is your first layer of protection, and it should always be planned before you execute a trade.
Place your stop-loss based on:
- Key support or resistance levels
- Market structure (higher highs/lows or lower highs/lows)
- Current volatility conditions
- Your predefined risk percentage
Why does it matter? A well-placed stop-loss prevents small mistakes from becoming major losses, especially during December when price movements can be unpredictable.
Santa’s Top Tip:
Define your exit before your entry, clarity upfront reduces emotional decisions later.
6. Have a Plan: Know Exactly How You’ll Trade Before You Start
A trading plan gives structure to your decisions and removes uncertainty from the process, something especially valuable during December’s unpredictable conditions.
Your plan should outline:
- Your entry and exit criteria
- Risk per trade
- When you trade and when you don’t
Why does it matter? A clear plan keeps you focused and consistent, even when markets become noisy.
Santa’s Top Tip:
Plan first. Trade second.
Conclusion: Trade December with Structure and Confidence
December brings thinner liquidity, sharper moves and unexpected reactions. Santa’s Trading Checklist helps you stay disciplined and prepared.
Use it to stay structured, manage risk, and make clearer decisions during the final stretch of the year.
This content is for information purposes only and does not constitute investment advice. CFDs are complex instruments and carry a high risk of rapid loss due to leverage.