Is it worth trading during the currency market holidays? We believe this is a question that each trader has a personal answer to.
Holiday trading is very tempting, especially for beginners. It can be difficult to pull yourself away from the excitement on the market and take a break from the action. Therefore, we will outline 3 different reasons to avoid trading during holidays.
Banks are usually closed on holidays and professional traders and big institutions are on vacation. Because of this, two way trading is very limited. This implies that prices can move very easily in one direction if any surprise large orders come in.
The evidence of low volatility is shrinking of currency pairs’ swings during the day. This is a period of time when the top forex are out of game, which means that no one can prodice a szable interst in some particular currency pair. The result – ranging market. So there is no possibility to make a decent profit.
Unpredictable market conditions
Due to low market volatility and liquidity, the price can move unpredictably. It may swing in 15 pips range the whole day or rise dramatically in a minute.
There will be no chance for you as an ordinary trader to react to those market movements. By the way, do not use your trading strategies or the ones provided by your automated expert advisor. During holidays, market can mislead the sophisticated algorithm of your top reliable Forex expert advisor that may cause huge losses for you.
Forex is a job just like any other
A trader is the same kind of a worker as those who work in offices, banks and manufacturing companies – he has weekends and holidays on the same days as others do. Traders have days off, when there are holidays in their country or across the globe.
Holiday Forex trading is not the best activity for such days. Therefore, make the most of your holidays and enjoy with your family and friends.