Here is food for thought while you trade today
Avoiding Holiday Trading in Forex
As such, a lot of banks and businesses take the day off. However, the Forex market will remain open. This is tempting for those that have a desire to get into the market to trade. However, it would be wise for one to refrain.
Liquidity is incredibly low on US holidays. When the major players are not in the game, price is not susceptible to move in logical patterns as it typically would. The benefit one gains from liquidity is that the market offers a better opportunity to take advantage of price action. With low liquidity, price is more likely to move in an unpredictable range as opposed to a trend.
Pricing as well is completely irregular. With low liquidity it doesn’t take much for price to be pushed around if someone stepped up to the plate and placed a large order. As such technical analysis is more likely to fail to do the unstable nature.
As well, price can take a steep turn in direction only to be quickly corrected. This should be of concern to day traders who keep narrow stops. You might find that it takes hours for your trade to slowly move in the right direction, only for it to spike up, knock out your stop, and start the decline back towards your original profit target.
Trading can be stressful enough at times. There is no sense on trading on a day where you are minimizing your edge in the market. Enjoy this extra day of vacation. Spend time with your family and friends. Watch a movie. Catch up on chores. The market will be back in full swing on the day after the holiday.
Holidays truly defies the logic of what you are doing in the Forex market. Are you looking to profit or are you looking merely to trade for the sake of trading?
Bottom line is, just keep your money out of the market.
Very wise words
podberry
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No Holiday in America, but current price action is indicative of the 3 day short week in the UK as most of the big players have taken time off.
pair trader
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cause i just sold it and it looks unstable for the coming hours
mike1booth
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Very wise words
Didn’t we have this discussion yesterday? About UK and US holidays, the relative size of the UK and US markets? The fact that the US market opens 5 hours after UK and so on and so on?
The fact is that today is not a holiday. We can speculate about a lot of employees taking annual leave because of the way the bank holidays have fallen until we are blue in the face! Do the banks close? No of course not.
We have a system, and I think all this speculation on which days to trade and which not to trade is folly. Mark developed this system and I certainly have had no word from him saying don’t trade this day or that. We have good days, we have bad days. Thankfully, we all know the system works and we all know that we will have more good days than bad days. If anyone knows which these days are going to be good or bad in advance please let us all know.
Mike
P.S. Just hit sl lol.
I don't subscribe to this no volume business. The UK has not shut down. Yes some traders might have taken leave buy someone is covering for them. Asia is not on holiday, Eurooe is not on holiday, the US is not on holiday. Do you really think UK trading desks are shut down this week? I don't believe so. Yes it happens at Xmas but then everyone is off.
wiseambitions
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There is no valid reason to me why half the trades by probability in the last few days should not have been winners.
Results April so far:
35/40/BE -125
40/40 -120
10/40 +30
28/40 +92
podberry
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Mike, so I take it you will be trading after the 2nd week of December and between Christmas and New Year, good luck, the banks will be open then too
Jashfx
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Well that depends: TP= 35, I have personally only had 1.
Those that used TP= 30 would of had about 7 winners I think (maybe 6--not sure).
Could of been a great month if trading 30/40/20 (instead of 35/40/20) or 30/30, no BE for those that like 1/1 (instead of 40/40,no BE).
Thanks. Of the first 2 settings how many have been winners IE TP?
SL hit -40 pips
Last 12 trades: 9 loses | 3 wins
what was you trading in?
shoot2scoot
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This is a tough one. Maybe as it's a good time to take a holiday the No 2s are running the desks and are more cautious? Maybe everyone expects it to be quiet so they behave differently? Maybe the industry leaders who need the currency want to wait for more predictable times? Who knows, probably one of those self fullfilling prophesies that the market is built on!
Whichever way, why fight it?
