Stupid me thought that I would release a post about my trading every day, but look how that turned out. There is a valid reason for not posting for the rest of the trading week, and It had to do with holidays.
Within any walks of life, it is wise to plan your weeks where possible. In trading, this is a necessity. It ensures that I am not trading on days where the sentiment can change in the afternoon or overnight. Most significant economic events have defined scheduled dates, with those schedules post on several websites.
Silly me thought I was prepared for the month ahead, but there was one thing I had missed. European holidays are more important than the UK holidays, which I have now learnt the hard way. European traders make up the majority of the FX session from 7 am – 3 pm. If the whole of Europe is on holiday what do you think the market is going to do?
That’s right; those markets are going to do what they want, and as a trader who utilises volume to make all his trading decisions, this makes my trading difficult. When the market is lacking volume, my edge vanishes. Ascension Day took me by surprise last week and affected the volume in the FX markets across multiple days.
A lot of people take the day after Ascension Day as a long weekend. So when you look at the week gone, Traders were loading up on Monday and Tuesday, then the week was over. With significate economic news on Wednesday, Holiday Thursday, and unwritten holiday on Friday, no trader was putting on significant positions this week.
For me, I have found a 1-hour threshold between 8-9 am that I will be using to check intraday volume. If I don’t see the volume I need to trade, I walk away for the day. Intraday forex trading is not easy, and you need to ensure you are willing to trade within your risk tolerance. Your risk tolerance should be built into your strategy/plan and tested for at least six months. Look like I still have a long way to go 🤦🏾♂️
“You only fail when you give up.”
With love from the Trading Dragon