Making The Most Of Quiet Holiday Trading
With the Christmas holidays kicking in and traders around the world taking some much-needed time away from the charts, the markets become predictably quiet. Holiday trading means there is a fall-off in volatility and an absence of news releases which pushes traders wisely choose to take some time away from the screens and enjoy the holidays. However, the holidays can also be a useful time for getting your trading affairs for the New Year.
The downtime over the holidays is the perfect opportunity to go back over your strategy. Make sure that your method of engaging the markets is the best it can be! It can be challenging during the active trading periods to review your strategy properly. So, the quiet holiday week is a good time to highlight any weaknesses or any opportunities for improvement. Key to this is having kept a thorough trading journal over the year. A well-kept journal offers plenty of insight into your practical and emotional trading game. This will also highlight any areas which need working on.
When reviewing your strategy, it is also important to consider how well you adhered to your strategy. Did you stick to taking your trades as dictated by your plan? Should you over-trade or under-trade? Did you keep your risk the same for each trade? Did you manage your trades as per your plan, or did you actively manage them? Conducting a thorough review of how well you stuck to your plan can be a valuable learning experience.
Review Your Setup
Concerning monitoring your performance, it is also essential to ensure that your trading setup offers you the best functionality possible. If you have an old laptop that sometimes freezes when trying to place or manage a trade, it’s time to replace this (maybe you can add it to your Christmas list). If you have been consistently thinking that having an extra monitor would give you more market coverage and keep you better aware of opportunities in the market, now is the time to set this up. Or maybe it’s time to think about how you set your charts up and how you make use of alerts.
Alongside this, it’s also important to evaluate the effectiveness of the social media connections you have. It’s great in this modern age to connect with so many other retail traders online. However, there is such a thing as too much info. If you feel like some of the traders you follow have been influencing your trading decisions, it’s time to streamline your feed.
Holiday Trading Is Always A Time for Learning
The quiet holiday week is the perfect opportunity to brush up on your market knowledge. Even market-weary professionals take the time to consume new information and expand their knowledge. Is there a trading book you’ve meant to pick up? Or maybe even a webinar or podcast series you want to check out – this is the perfect time.
So, provided you can tear yourself away from the sofa (or the pub) here are just a few key ways you can use the quiet holiday trading period to really set yourself up for success in the new year. However, please remember that it is also vital for traders to get some time away from the markets and refresh and recharge. So, with that in mind – wishing you all happy and relaxing holidays.