With Christmas just few days away, some people, those who hold jobs, will have more time available than normally. They might be tempted to trade. From my personal experience, this is not the best of ideas. Some brokers will stop trading altogether, while others might offer limited access, with extremely wide spreads. Liquidity drops dramatically, since most professional traders and market makers take time off. This year Christmas day falls on Thursday. One has to remember that in Europe Friday will also be a holiday. Most countries there observe two days of holiday for Christmas. This provides an opportunity for a long weekend, which most people will, wisely, take. And, of course, Christmas Eve is normally a rather inactive day.
Here are some snapshots of price movements over the same period last year.
These are very large images which wouldn’t fit very well in here, hence the links. Just click on them.
http://img101.imageshack.us/img101/6640/eurusd2007decem4cg0.jpg
http://img162.imageshack.us/img162/8422/usdjpy2007decem4ii9.jpg
As you can see, the trading ranges were very narrow. Combined with wider spreads, it is hardly worth trading during this time. Possibility always exists for some unexpected fundamental development, but probability for that is low. On balance, it would be better to step away, forget the charts and simply enjoy time with family, friends. Myself, I’m planning to be done by morning of the 24th, my time, and have a mini vacation. I might post something here on the weekend, but no Forex stuff on Christmas.
Mike K.
Don’t think much will happen? Are you going to even check what is going on, or are turning computer off? I remember your Thanksgiving post and it was on the money.
Oh, I will look at the charts, but I doubt any trading will happen for me. I think it is important to step back every now and then. Trading is not everything.
And I thought somebody like you trades all the time. Just kidding. What about New Years Day, are you going to trade then or play again?
I’ll post something about New Year’s next week.
[...] Trading during Christmas. | fxmadness.com fxmadness.com/2008/12/20/general/trading-during-christmas – view page – cached With Christmas just few days away, some people, those who hold jobs, will have more time?available?than normally. They might be tempted to trade. From my [...]
[...] a more familiar territory, trading should be dramatically different this week. As it is typical during this time of the year, one should expect liquidity to dry out, trading ranges to contract and markets falling into sleepy [...]