Christmas Forex: A Note For New Traders

This one isn't directed to the Forex vets out there, because you learned this one a long time ago.

This is for the new traders who haven't experienced Forex during the Christmas season before.

As I'm sure you've already noticed, the market has essentially ground to a complete halt. This happens every year, and the reason is simple: most participants are out and about doing other stuff and are not in the market, so the liquidity is quite low.

For microscopic retail traders (that would be you and I), this is actually a fairly hazardous time to be involved in this stuff. Low liquidity means sharp, exaggerated price moves. What looks like a trend can whipsaw on you and quickly run the other way, plunging your account into the red. There are distractions, distractions, and more distractions at this time of the year, too.

This just isn't the time to be that involved in this stuff. After trading all year long, take a break! You've earned it (even if you've been losing money - this is tiresome stuff whichever way your fortunes turn). Maybe you don't celebrate Christmas, but that doesn't change the fact of the conditions of the Forex market at this time, so go find something enjoyable to do while we all wait for the new year.