2019 is passing by so fast and the Easter Holiday is a couple of hours away. This is just a soft reminder to all traders that liquidity tends to be low and the market usually does not respond to our liking during international holidays. The simple reason being that people take a step back from trading. The market is a culmination of traders’ thoughts, ideas and beliefs executed differently. When less people are trading, less of these ideas are translated into liquidity in the markets making opportunities to trade scarce.
This is not to say that you cannot find trading opportunities over the Easter Holidays. Rather, given the low market volatility experienced during this time of the year and other notable events like Thanksgiving, Christmas and New Years’ Eve, it is only wise to have it in mind that you don’t necessarily have to open new positions or worry about missing opportunities at this time of the year. It is understandable if you feel the need to be in the markets, but it is equally important to know how to gauge market sentiment.
The hardest thing to manage is emotions. Exercising restraint calls for a mature trader knowing that sometimes not taking up new positions is part of trading. This might be a bit challenging for day traders during this period. For swing and position traders, holding on to your running positions and seeing how they play out after the holidays could be something you might want to consider. No matter what type of trader you are, volatility is your closest friend and chances are he is going to be missing in action during this festive season, so you might as well want to catch a break. Happy Easter Holidays!