As traders, we all want to be in the action and make great trades. If we are not trading, we are not potentially making any money, if trading is your sole profession. I remember when I first started out trading full time in 2006 and I would say to myself, “I am going to trade around the holidays.” That was eight years ago, and I can tell you from experience you will save more money by not trading than you will by trying to trade the stock market during holidays, such as Thanksgiving or Christmas.
I personally encourage the traders I mentor to take the time off and enjoy the break. I tell them to spend some quality time with family and friends, and for good reason – most other traders are taking a break.
During the holiday period there is a huge reduction in trading volume across the board. That means the smart traders are not trading. So you are mainly trading against a bunch of computers that are running the show and keeping the markets open.
Lack of volume creates liquidity issues and could be damaging to your trading account. The trade will always let you enter but there may not be anyone to buy your shares. So, take my advice – take time off to avoid the headache. It is unlikely you will miss a bunch of great setups. Rather, you are more likely to avoid a bunch of crappy setups that you pushed because you were trying to trade when you shouldn’t be.
Relax and enjoy your holiday.
Happy Thanksgiving!
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