Is holiday trading in thin markets good? | Forex Factory

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Is holiday trading in thin markets good?

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  • Is holiday trading in thin markets advisable?
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  • #1
  • First Post: Dec 23, 2009 4:28pm Dec 23, 2009 4:28pm
Trading is an art.

Many markets participants (note not called "traders") enter the market with a lack of discipline and plan and lose until a desire is there to follow a clear route / trading plan to succeed.

But we all know that there is a certain "feel" one develops for trading. This "feel" is developed by experience.

When trading in thin market conditions during holidays the market's behaviour may lay certain wrong "foundations" in your experience, in other words because you experience the moves / or lack of moves (momentum) in holidays you expect them to continue during peak times.

Or you may trade in holidays with a certain expectation with regards to momentum and daily ranges based on experience from peak times and then end up losing money because of "thin price action".

True? False?

What do you do and use to switch your holiday trading mode on and off?

Or did you make so much money during the year that holidays are needed to spend it?

Who / How would you advise to trade in holidays?
  • #2
  • Dec 23, 2009 4:37pm Dec 23, 2009 4:37pm
bad idea.

thin liquidity means bigger moves with less liquidity.
you will see much spiking the next two weeks. margin hunters are ready
  • #3
  • Dec 23, 2009 4:43pm Dec 23, 2009 4:43pm
I usually knock off a few days before. 12/22/2009 was my last trading day for the year. I'll start back up around the 4th of January or a little later. Enjoy the holidays with your family. Kids are out of school too so do something besides trading.
  • #4
  • Dec 23, 2009 4:45pm Dec 23, 2009 4:45pm
Quoting GulfCoastPip
I usually knock off a few days before. 12/22/2009 was my last trading day for the year. I'll start back up around the 4th of January or a little later. Enjoy the holidays with your family. Kids are out of school too so do something besides trading.
Exactly. I enjoy my vacation and get back to it on the 5th. There's no need to be a mindless drone in this "factory".
I dream, therefore I become.
  • #5
  • Dec 23, 2009 4:48pm Dec 23, 2009 4:48pm
Quoting I like steak
Trading is an art.

Many markets participants (note not called "traders") enter the market with a lack of discipline and plan and lose until a desire is there to follow a clear route / trading plan to succeed.

But we all know that there is a certain "feel" one develops for trading. This "feel" is developed by experience.

When trading in thin market conditions during holidays the market's behaviour may lay certain wrong "foundations" in your experience, in other words because you experience the moves / or lack of moves (momentum) in...
I think I understand what you are getting at. Hence...
This is my Prime Time to scalp. Never in a trade overnight & Trade only when I have a couple of hours to commit. Let's play the Wild. (not for everyone)
Absorb my Sig.
  • #6
  • Dec 23, 2009 6:03pm Dec 23, 2009 6:03pm
One of my rules is to never trade after Thanksgiving. Lately, I haven't been able to control myself, easy money during the holidays that I just couldn't pass up. Now I've made a new pat with myself, not to trade after Xmas until New Year ... we'll see how that goes!
  • #7
  • Dec 24, 2009 2:42am Dec 24, 2009 2:42am
Quoting Bemac

This is my Prime Time to scalp. Never in a trade overnight & Trade only when I have a couple of hours to commit. Let's play the Wild. (not for everyone)
Absorb my Sig.
Thank you Bemac.

Do you trade with your full account then? or do you use a smaller sideline account?
  • #8
  • Dec 24, 2009 3:39am Dec 24, 2009 3:39am
One of good strategies during holidays is to keep $ bear position in case of some kind of terrorist attack.As i heard there are some indications that London could be a target just after New Year and we all know how $ react for those things.

This indicator is called 'suicide bomber'
  • #9
  • Dec 24, 2009 4:55am Dec 24, 2009 4:55am
Great time to learn. Learning, to my way of thinking is best done in the worst of situations. THEN, when "normal" happens, its sooooooo much easier in every part of life.

Clay
  • #10
  • Dec 25, 2009 11:43am Dec 25, 2009 11:43am
Merry Christmas and happy new year to all participants, is time to drink beer or clennfidish not trading

http://ak.imgag.com/imgag/product/pr...66187/graphic1

Chonchy
The Chonchy
  • #11
  • Dec 25, 2009 12:11pm Dec 25, 2009 12:11pm
It's a stupid idea...there's not enough liquidity to be able to trade. You will waste your money...most of the banks pack up shop from the 21st december.

Better spend your money on your wife/girlfriend.
  • #12
  • Dec 28, 2009 2:37am Dec 28, 2009 2:37am
So far....43% say holidays are there for a holiday
  • #13
  • Dec 28, 2009 2:45am Dec 28, 2009 2:45am
Quoting I like steak
So far....43% say holidays are there for a holiday
spell L-E-V-E-R-A-G-E
  • #14
  • Edited 10:09am Dec 28, 2009 8:36am | Edited 10:09am
I personlly believe this week (week before New Years) is the worst week to trade. Big banks, hedge funds, & government are closed for the week, therefore no market news or sustanable market movement. This week, look for huge spikes and ranging conditions. Even experienced traders don't trade these conditions. Unless your scalping skills are up to par I wouldn't advise trading this week.
  • #15
  • Dec 28, 2009 10:14am Dec 28, 2009 10:14am
Well I trade all times normally. During late NY session when liquidity is low I often fade breakouts as they go after stops. That is always fun!
  • #16
  • Dec 28, 2009 12:30pm Dec 28, 2009 12:30pm
Quoting Heliocon
Well I trade all times normally. During late NY session when liquidity is low I often fade breakouts as they go after stops. That is always fun!
yes, especially after a day where the normal range has been exceeded, but then only at day end.

Problem is though, cause it is so thin there may be little to prevent the retrace.

The old days .... I once traded EURJPY on last day of year and it slided for more than 300 pips ...so I am a bit cautious.

Cheers
  • #17
  • Dec 28, 2009 12:54pm Dec 28, 2009 12:54pm
I like to scalp volatile moves & do so on a regular basis. I do this under "normal market conditions" at the times "you" would expect volatile moves to occur - FO/LO & run-in to Tokyo open, and "news" announcements. I call such moves "predictable volatility".

This is the first Thanksgiving/Christmas stretch I have traded so I have been on the lookout for the exaggerated moves "you" might expect during thin liquidity. And of course the euro (and Gold) got sold pretty hard after Thanksgiving - and that played out by the third week of December. I caught some short plays there. And it was Good. But I don't think that was a thin market phenomenon, by & large.

At any rate, I haven't placed a trade since Dec. 20 - and I don't think I have missed much. Tuned in to the charts on a regular basis and have not seen the liquidity I need to feel comfortable scalping. So, yeah, I can see why the experienced daytraders take off chunks of time around year-end/Christmas. And there's the whole family time peace and holly and sleigh bells thing. Ho ho ho.

But somebody who skipped the first 2-3 weeks of December obviously missed a huge opportunity....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #18
  • Dec 28, 2009 2:09pm Dec 28, 2009 2:09pm
Quoting The Fool

At any rate, I haven't placed a trade since Dec. 20 - and I don't think I have missed much. Tuned in to the charts on a regular basis and have not seen the liquidity I need to feel comfortable scalping. So, yeah, I can see why the experienced daytraders take off chunks of time around year-end/Christmas. And there's the whole family time peace and holly and sleigh bells thing. Ho ho ho.
I totally agree, I have grown a beard while sitting and waiting for some of these pairs to get moving.
  • #19
  • Dec 28, 2009 3:21pm Dec 28, 2009 3:21pm
Quoting The Fool
... And there's the whole family time peace and holly and sleigh bells thing. Ho ho ho ...
& Tiger said...
Where Where Where...

Seriously:
I'm aside for at least another 2 weeks.
BMc
  • #20
  • Jan 4, 2010 1:36pm Jan 4, 2010 1:36pm
choices...
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