Forex Trading Hiatus?
November 21, 2006 by Trader Rich
I remember last year how painful it was trying to trade in market conditions where volume has been greatly reduced. This week is Thanksgiving week and therefore falls into this category.
There has not been a lot of movement in the GBP/USD this week; the price has tightly consolidated around the highs from Friday. I have a hard time staying away from the market for any period of time and it would be difficult for me to close my charts and not reopen them until Monday but I am thinking about it. December also tends to be a month where traders take a hiatus but I'm just not experienced enough to know what to expect the rest of 2006. I've heard that sometimes during these times, the big players do get involved and push the market whichever way they want since it's probably much easier for them to do so.
There are times when I've felt like I was in the flow but trying to stay in the flow during this time may be fruitless and a confidence killer. I'll continue to monitor but this might be a great opportunity to take a break from trading until 2007. Even if I take a break from trading, I won't be taking a break from learning, back testing, or website posts. Forex has become such a part of my life for the last 17 months or so that I wouldn't know what to do with myself…
How Long Will Low Volatilities in FX Markets Last?
Where has all the volatility gone?
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Hi,
Agreed with you that in general, Dec will be slow for all types of trading and maybe it is a good idea to take a break from trading but not from all the learning and testing. I certainly be busy reading and testing setups.
See you again in 2007.
Cheers
waichong
Trading expertise is all about ‘knowing when’. Knowing when to be conservative; knowing when to be aggressive; and, knowing when to stay away.
Since traders can’t make the markets move–and, instead must wait for the market to come to them–it can be comforting to remind yourself that, like a surfer who is also a weather forecaster, you know enough about the trading climate not to try to surf a flat sea.