Christmas is now just a few weeks away, and although we have reduced trading hours over Christmas and New Year, the forex markets are still there for us to trade if we so wish.
So bearing in mind that many people subscribe to a forex signal provider in order to find winning trades, many people will be asking themselves if they should be opening any trades over the holidays.
The fact is that whilst you may still receive trading signals over the holiday period, it is not generally a good idea to trade the markets at this time. This is because traders start to leave their desks, and volumes drop off quite sharply.
Therefore it is often a lot harder to predict future price moves because technical analysis may not be as reliable, and the markets may not react to well established areas of support and resistance, like they would normally.
You can still get some big price moves from time to time, but this is often because there is no volume in the markets, and so the markets can move in one direction or the other fairly quickly with no resistance.
So if you have subscribed to a service such as After Work Signals after reading this After Work Signals review page, for example, you may want to think about ignoring some of the signals that you receive during this time, and wait until the markets have returned to some degree of normality in January.
Similarly if you use some kind of trade alert software such as Bill Poulos’ Forex Profit Caster, then you may want to stop using it just before Christmas, when volumes start to drop off, and fire it back up a week or two into January when all the traders are back at their desks.
Forex trading can be difficult at the busiest times of the year when volumes are high, but it can be even more challenging when volumes are thin, which is always the case over the Christmas and New Year holiday period.
So it is best just to stand aside for a few weeks, take stock of how well you have performed in the current year (whether you have traded yourself or used some third party signals), and enjoy the festivities. Then you can come back fully charged and raring to go in January.