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Trade
Guide to surviving and achieving in holiday trade
It happened again. And we know that this happens from year to year. The day-to-day routine, everyday concerns and suddenly You don't have time to blink, as the blue – new year's holidays are already "there."
From year to year we hear again the same. Some traders say that you should never trade during the holidays, while others believe that it is the perfect time to trade. It seems that this is the case when everyone has their own opinion, and different from the others.
For myself, I have established the most important trading rule which I follow in the trade during the holidays, and you can argue that You agree with him unquestioningly: family always comes first, and trade only on the second. And this rule, which I refuse to make exceptions. So, this means that several times during the year to stop the trade in "halfway" in anticipation of the onset of the big holidays? Not at all, although there are mandatory breakpoint, and a number of rules fit to trade into the market in the festive season and its for.Let's try to formulate them (for example, Christmas and New Year):
Rule # 1: Look for targeted traffic at the beginning of December
The first two weeks of December is just perfect for trading. Historically, in the period between 1 December and, say, 12 - 14 December, usually we only see directed almost linear movement in the market, are "draught" through the entire trading day. Almost every day from the beginning to the middle of the last month of the year we are faced with a unidirectional movement in which simply determine the entry point, and which have a span of 50 or even 100 pips. You can even trade so that You can take profits on the same day.It's kind of a season of "easy money", which is very popular with many traders. Don't believe me? Let's look at the chart. The first chart GBPUSD, December 2013. 17 hours (for only one trading day), the market plummeted 100 pips. On the next trading day the market changed direction and rose by 90 pips. Then again, drew decline, already at 110 pips. So with full confidence we can say that the first two weeks of December are an excellent choice for active trading, and thoughtful traders will be able to finish the year on a positive note."
Rule # 2: Highlight the important candle charts
Although the scale directed movements be big, but it is necessary as early as possible to seek out signs that contribute to their accurate identification. At this time, price movements, often do not last more than one day. You should study carefully the chart on the subject of the appearance of candlestick patterns "tweezer", "absorption", "shooting star" and "dark cloud".
Rule # 3: Find time for technical analysis
I think that the most important key to achieving success in pre-holiday trade is technical analysis. Fibonacci levels will help You technically to accurately identify the direction of the price movement correctly and to determine the point of entry and exit. And, of course, extremely important hand-drawn trend lines. Make sure that You have already identified the levels of support and resistance. This will help You highlight on the diagram the direction of travel, and Your trading decisions will become more apparent and balanced.
Rule # 4: Limit the trade in anticipation of the holidays
Why reduce the number of agreements on the eve of big holidays? Let's look at another chart. While the holidays inevitably approaching, the market is becoming more likely so-called "wild candlesticks" or, in other words, long "laterals" unexpectedly "explode" one or two candles - monsters that are able to "eat" most of the pips won You in the market. Not only do these candles are fragile, as they can be very dangerous for preservation of capital, very important at the end of the year.One of the main principles in the trade - don't seek out agreement, what is not. Trade only when the deal for You is obvious and her purpose is clear. You need to be confident in what You are doing. If these two statements are not met, it is better to completely withdraw from the transaction. You will not lose money on the deal, which had been refused.
With such "wild" candles search for points of entry and exit can be a nearly impossible task. For this reason, we advise You to set yourself on the completion of all transactions already open and to find a more useful activities during the last two weeks of the year, or as a reasonable alternative, drastically reduce the size of the transactions.
Rule # 5: Keep the defense
All right, that's what we said. Don't be afraid to build defensive positions in his pre-Christmas trade. When a year almost to the brink and You are in search of potential opportunities for trading, in any case, don't be a hero. Become the protector and guardian of the revenue that You received during the year, and focus on preserving Your capital. Minimize your risks in Forex trading and do not open these agreements, which can promise the unnecessary and unjustifiable loss.
We want that or not, but when the year ends, we should change our trading setup and priorities. Using the historical data of the currency market over the past years, it is much easier to decide what should be our trading strategy at this time of year, and to develop a plan for successful completion of the trading year.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 263
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