Christmas Trading isn’t a time for giving
Just over a year ago I wrote one of my first articles on LinkedIn – It was about giving at Christmas, but not in a good way. It was about giving alright but not all your hard earned trading money away in one week. I just read it again and everything stands firm. Don’t do it. I did for many years and you don’t have to. Give yourself the best present ever. Be with your family and loved ones. That you can do.
Here’s the original article……..
I used to be a day trader for a large futures prop shop in London and I was often hurt by Christmas and the ridiculously thin markets that come with it. It is for many the week of giving – I took this quite literally and often gave away a months profit with a couple of trades. Ouch indeed.
I’d like to give any new traders out there some advice. I’ve seen pain – a lot. Don’t do it. The calendar is thin, junior traders at hedge funds and banks are the only active guys trading. They make mistakes and are uncertain, this breeds more uncertainty. When they get onside they’ll snatch profit quickly or change their minds. Jerky price action stops people out. Anger sets in and a calm head is nowhere to be seen. Don’t do it. If you really can’t wait a week here are my 5 top tips.
(1) Reduce the size of your position by half and increase your stop by double the amount.
(2) Take profit sooner than you normally do, because every Tom, Dick and Harry will be doing the same.
(3) Expect price action to move on nothing. Algos get turned off as well as humans – many of whom are in St Barts.
(4) Technical analysis still works but look for failures on key levels as many inexperienced traders will have their stops too close to entry.
(5) Don’t do it.
I’m sorry but I had to say it one final time.
Good luck and trade safe.
Philosophy: "Define your risk, only then can you ignore it"
Read how Patrick got into trading here
- How to trade: A LEVEL - August 4, 2018
- USD mixed – a bit like me - June 5, 2018
- What is the market focused on ? Over to you trader. - May 29, 2018
Great article Patrick. Many thanks for the reminder and Merry Christmas
Many thanks John
Trade safe and watch that risk now. Someone else once said there are 51 other weeks in the year you can trade as well. 😉
Merry Christmas !
Oi cool dude 🙂
And a fine merry one to you Patrick , if we don’t get the pleasure before twentyfifs
Hi Dubsly !
Nice one and here’s to a great new year too ?