Forex and CFD Summer Holiday Trading: Dos and Donts

September 06, 2017 14:41

Trading Holiday.jpg

Dear traders,

August is usually a holiday month. Traders are no exception. In fact, the freedom that Forex trading offers allows us to trade wherever we are. The beauty of this business allows for an unpreceded freedom to shape our holidays as we want. While plenty of traders love the off-screen time, spending time with their families or just having a break, it's not that infrequent to find a few traders enjoying both resting and trading the same time. I will speak from my personal experience and will try to explain the dos and donts of trading during summer holidays.

Choosing a Holiday

Source: Nenad Kerkez T (personal)

Before choosing where to spend my holiday, I always think about what I want from it. Instead of choosing where to go, I carefully choose what I want to do. Is it seeking thrills, discovering new cultures, or just freely enjoying the sun and beaches? This is the first step everyone should consider.

This summer, I enjoyed driving through the Croatian and Italian coastline, making small stops for summer shopping sprees. I enjoyed every bit of summer, charging the batteries for a new trading season.

Budget Planning

It is always important to think about the companions you're travelling with as well as their needs and expectations. How big is their budget? How much are you willing to spend on a holiday? All of this may dictate which part of the world you'll travel to and what you will do. Being a professional trader and analyst, I'm not particularly limited budget-wise, but rather with decisions about what I want from my holiday. I always value the money I earn, and I try to put more meaning to it. Doing so, I may have a better chance of making my holiday a memorable and rewarding experience.

Advantages of Being a Trader

FullSizeRender 1.jpg

Source: Nenad Kerkez T (personal)

I must admit it is a bit hard not to monitor the markets while having a vacation. There are multiple advantages of being a trader. If you are well-versed with Forex and CFD trading, you can try trading with just a few clicks using a mobile phone application. Here is what I did this summer, while having a holiday in Croatia and Italy. I invested a very small amount of capital and almost doubled it in five days. The thing is... I did it for fun. Even better, the majority of those trades were made at the beach after having a good swim and sunbath, completely relaxed and stress-free.

trading mobile2.PNG

Source: Nenad Kerkez T (personal)

The seasoned trader should have strategies for either trading the markets around these times or avoiding trading altogether, based on their personal profile and overall experience. For the new trader, it is better to stand aside at these times until you understand how the market behaves.

Market Liquidity During Summer

Summer, especially August, is usually a very slow month to trade, with many institutional traders in Europe on vacation. At this particular time, some trading systems can be disastrous due to the lack of liquidity in the market. While Europe enjoys summer holidays, have in mind that New Zealand and Australia don't have them, so NZD, AUD, and JPY crosses usually trade better compared to standard major currency pairs. The exception is EUR that usually ranges during the summer, so that range-bound trading methods can be pretty successful.

The video below introduces you to two low-volatility trading systems for summer holidays.

Tips For Summertime Holiday Trading

  • Reduce risks by setting the stops more tightly
  • Choose trending markets
  • Trade the JPYNZD pairs
  • Trade Cryptos
  • Try to trade less and less often
  • Rely on powerful trading tools
  • Set your targets to 20-30% of the ATR
  • Watch and learn

Happy Holidays!

Should you engage in Forex trading while enjoying summer holidays? If you are in a good mood for trading and you can reserve a small part of your pre-planned budget, go for it. Otherwise, approach your loved ones and tell them that you are very excited to spend some uninterrupted quality time with them. Then prove it! Spend some of that quality cash you earned during the previous months and enjoy your holiday.

Cheers and safe trading,

Nenad

Forex101 Forex Trading Course



' + key + "=" + value + ''); } else { return uri + separator + key + "=" + value; } } function getCookie(name) { var value = "; " + document.cookie; var parts = value.split("; " + name + "="); if (parts.length == 2) return parts.pop().split(";").shift(); } $('.kmi-listener').on('click', function() { if($(this).attr("href").indexOf('kmi=') == -1) { var km_cookie = getCookie('km_ni') || getCookie('km_ai'); if(km_cookie) { $(this).attr("href", updateQueryStringParameter($(this).attr("href"), 'kmi', km_cookie)); } } });