The FX Winner

For many forex traders, holiday trading is very tempting. It can be difficult to pull yourself away from the excitement on the market and take a break from the action. Let’s look at why we avoid trading on holidays.

1. Everyone is taking the time off and so therefore the available Liquidity to trade with is highly reduced

Banks are usually closed on holidays and institutional traders are on vacation. Because of this, trade volume is reduced. That means that prices can move very easily in one direction if any surprise large orders come in regardless of the technicals.

2. Bust through your stop loss

If, and normally it will happen, where a surprising event will happen and because the markets are not liquid, they will move very quickly and spike on you. These moves can happen in seconds and if you are trading, the market can make a move against you before you even have a chance to act and can and will blow right through your stop loss.

3. Flat Market More Likely Than Spikes in The Market

The unexpected spikes are usually the exception rather than the rule. Most of the time, there is very little action in the forex market on US holidays. For  forex trading purposes, technical analysis usually fails. The market is usually so slow that even if you can make money, it will probably be so little that it isn’t worth it.

4. Spend Some Time Off!

We all need to rest and take some time off from the markets and holidays are the best time to do that. It’s better to take time off and spend it with your family. That time does not come around often and it’s better to take that time off while you can. The forex trading markets are busy most of the time. Holidays are a perfect time to rest , reflect, and recharge.