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Ever since the first crypto currency, Bitcoin, was launched - numerous digital currencies have been launched to date.

The risks of trading in holidays

Anna Johnson Anna Johnson , 4/14/2018
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There are many people who are fond of this industry. They think of this industry as their children and they cannot stop form trading. This is why many people also lost their money as they keep on trading also on holidays. If you are a currency trader, you should know that trading in holidays is not good for your account. It will cost you money as there would be not much trader, the money will be of less amount. If the money is less, you will have a hard time in making your profit. It will also have in effect on your health because you will unnecessarily worry about the trends. This article will tell you why you should not trade in holidays and what the risks of it are. If you read this article, you will find it is better sitting at your home than placing trades on the holidays.

You don’t have to trade all day long to secure your financial stability. In fact, the experienced professionals in the United Kingdom only trade high-quality trade setup. They are overly concerned about their investment and they are not ready to take any unnecessary risk. During the holiday season, the market volatility becomes extremely thin and making profit becomes very hard. Moreover, the spreads are insanely high which makes it more difficult for the day traders to earn money.

Even after knowing these facts, some of you might be looking for a trading opportunity during such period. In such case, you must focus on the most traded currency pairs since the market volatility will be a little bit higher in comparison with the exotic pairs. But make sure you are not carrying your trade for a long period of time as it will dramatically increase your risk exposure.

It is when the market session is off

We know this industry is always open but you need to know not all time is best for profit making. The professionals do not trade in holidays because they know the risk of it. They know they can lose their money and they plan their trade accordingly. Though currency market is always open to the British Empire where the sun never set, it still has some time when the trading time is not good for you. The holidays are these times when all the traders are sleeping and they are not placing their trades. If the market is off, it means there is not much money, which is essential for making your money.

Fewer trades on holidays means low volatility

Volatility is important for the traders but if there are fewer buyers and sellers on the market, you will not get that advantage. It is the traders that can take down the prices of the currency pairs or take it upward. If you are trading in holidays, the first thing you will notice in your chart is there is not much volatility like the other days. It is not abnormal as it is expected in these days when there are fewer traders. Fewer traders on the market mean there are less amount of money being invested and less volatility.

The trend has no pattern

Holiday markets do not have any pattern. You cannot expect the market will show a good pattern that you can use with your strategy. Most of the time in holidays, you plan will fail and you will lose money. To avoid losing money, you need to control your greed and do not trade the market for holidays. Do not think it will slow you down but it is for your own good.

After reading this article, you must have a clear idea about the associated risk in holiday season trading. So be smart and take a break during the holiday season. You don’t need to trade all day long to earn money.