Trading the Forex market is fun and exciting for most of us, and even highly addictive at times for some traders. For the latter group the holiday season can turn out to be risky. Their entire focus is fully centered on trading, more trading and nothing but trading. While their determination is admirable, these traders need to be cautious during the holidays. Let us review what is at stake.
However tempting it might be to trade as usual during the holidays, it is important to realize that trading should not be treated as a hobby but as a business. And from a business perspective, the market is known to be ultra slow during the week of Christmas and also New Years Eve.
Therefore, putting normal or high amount of risk on any trades during this time is most likely a losing proposition. Many trade setups will not develop as expected because the markets move largely sideways. Even though some traders might have the urge to trade as usual, it is important to realize that this will most likely hurt your bottom line of 2014.
LESS TRADING DOES NOT MEAN INACTIVITY
Although caution while trading is warranted, traders are not obliged to take (some) time off. Many traders will find it a good moment to spend time with their loved ones and get their batteries energized for the trading year of 2015. Other traders rather stay engaged in their trading business throughout the holiday season. Not taking trade setups does not necessarily mean not being involved.
If you are part of the latter group, here are the usual trading activities that help your Forex trading:
- Trading with small risks: if you really find it too appealing not to trade, reducing the risk is the bare minimum you want to do;
- Demo trading and testing your (new) strategies: testing is always a useful activity for increasing the understanding of your ideas;
- Paper trading and back testing: with looking at past results, you are able to measure your strategy’s success or lack of it;
- Preparing your trading plan: reviewing the trading plan and looking for improvements;
- Preparing your 2015 business plan: reviewing the 7 pillars and making sure you are ready on all fronts;
- Setting up 2015 goals: make sure that you know what your goals are for 2015 and how you want to achieve them;
- Evaluating the trading year 2014: review your evaluations and try to understand how you can improve as a trader.
As you can see, there are plenty of useful activities for improving your business of Forex trading even without the “normal” trading.
Ultimately the best choice is to do what you think makes most sense. Whether you stay in the flow of trading or take a small or full break, ultimately everyone will be looking forward to the new 2015 trading year.
What are your plans for the next week?
Let us know what your ideas are regarding trading during this quiet period.
Thanks for dropping your opinion in the chat below and wish you Happy Hunting and above all Happy Holidays!
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