Archive for December, 2009
Well it’s that time of year again. The Christmas holidays are
always a good time to take a break from trading and an even better
time to catch up on some Forex education …
The holiday season is a notoriously bad time to be trading Forex
because there is often a lot of unusual and unstable behavior for a
number of reasons …
1) Long term traders often close out their large positions until
after the holidays
2) Large companies stop making large purchases for operations since
company operations often slow down at this time of year
3) Large companies often make strange unpredictable transactions
due to year end book keeping
4) Most large Banks close for the holidays, or at least certain
days during the holidays. These days can differ greatly from
country to country.
In short, it is NOT business as usual and the markets will not
usually behave as usual either so the risk you take trading during
this time is usually greater than normal and generally not worth it.
As a result I have stopped trading and will resume on January 5th
or 6th. You may want to consider doing the same.
This is especially important for scalping strategies like FAP Turbo
that require a stable sideways trading range during the off hours.