As I’m about to go on vacation I thought it’s a good idea to write down my thoughts about trading on vacation. Is it a good idea to do so, or just crazy?
I believe it depends. If you’re longer-term position trader and have a couple of positions open that are doing great and you don’t want to close them out now for example, I think there’s nothing wrong managing your position once a day while you’re on vacation. It won’t ruin your day and otherwise you’d probably sit there anyway and have a look at the markets once a day to see what would have happened if you didn’t close that trade. Which might cause you more stress thinking about the profits you missed out on.
On the other extreme you have traders sitting at the beach with their laptops somehow trying to day trade for hours each day because they might miss out on good trades otherwise. That I think is just crazy because then you’re not on vacation. You just work at the beach instead of working from your office. And while trading from the beach, making tons of money while you’re having a cocktail, is a common dream wannabe-traders have about trading, reality unfortunately looks different. At the beach you usually get bad internet connections, lots of distractions and the sun shining on your screen making it hard to see what exactly you’re trading. It’s a great idea, but it just doesn’t work that way, sorry. (Yes I tried this on my own.)
That means you’ll probably not trade too well at the beach. At the same time you can’t enjoy your vacation (hopefully you’re alone there and not ruining the vacation of your family and friends), you won’t relax and probably won’t make any money too. Bad choice.
Instead really take your time off. Don’t take a laptop with you. Just forget about trading for a couple of weeks. The markets will still be there when you come back! And when you do, you’ll be relaxed and full of energy, eager to trade again. Plus you might have tons of new ideas on how to improve your trading, having created some headspace during vacation. I really had some of the best insights into my trading while being far away from it. Not but actively thinking about trading but just by relaxing and allowing these insights to come to you. Clear mind means more creativity!
So what about me? I’m somewhere in between. I’ll have a small MacBook with me and will make sure I have internet access once a day to run my systems and update AlgoStrats:FX. Trading 100% systematic I don’t have to contemplate any trading decisions or worry about having made the wrong decisions. It doesn’t take me more than 10 minutes and being used to it, these 10 minutes don’t have any noteworthy influence on my vacation. Actually I set an alarm each day to make sure I don’t miss it, and once done I forget about it again.
But besides that I won’t look at the markets or actively think about anything related to trading. I won’t do any research, read any trading related books or read the news. I’ll just relax and create some headspace.
Happy Trading!
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Editors’ Picks
EUR/USD looks offered below 1.1900
EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.
GBP/USD slips back to daily lows near 1.3640
GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.
USD/JPY extends backslide as election fallout bolsters Yen
USD/JPY is trading in a choppy, range-bound structure on the daily chart, oscillating between the January high near 159.450 and the late-January swing low at 152.100. Price closed Monday at 154.410, dropping sharply by 1.47 yen (0.94%) after an initial gap higher following Prime Minister Takaichi's landslide election victory was met with verbal intervention from Finance Minister Katayama and Japan's top currency official Mimura, both signaling readiness to act on yen volatility.
Editors’ Picks
When are the China’s CPI, PPI and how could they affect AUD/USD?
The National Bureau of Statistics of China will publish its data for January at 01.30 GMT. The Consumer Price Index is expected to show a rise of 0.4% YoY in January, compared to 0.8% in December. The Producer Price Index is projected to show a decline of 1.5% in January versus a fall of 1.9% prior.
USD/JPY extends backslide as election fallout bolsters Yen
USD/JPY is trading in a choppy, range-bound structure on the daily chart, oscillating between the January high near 159.450 and the late-January swing low at 152.100. Price closed Monday at 154.410, dropping sharply by 1.47 yen (0.94%) after an initial gap higher following Prime Minister Takaichi's landslide election victory was met with verbal intervention from Finance Minister Katayama and Japan's top currency official Mimura, both signaling readiness to act on yen volatility.
Gold declines to near $5,050, focus shifts to US jobs data
Gold price falls to near $5,045 during the early Asian session on Wednesday. Traders assess whether prices have found a floor following a historic sell-off. The delayed US employment report for January, which was pushed back due to the recently ended four-day government shutdown, will take center stage later on Wednesday.
Ethereum: Whales buy the dip amid rising short bets
Following one of Ethereum's largest weekly drawdowns, whales are slowly returning to action alongside a drop in retail selling pressure. After slightly selling into the decline at the start of the month, whales or wallets with a balance of 10K-100K ETH began buying the dip last Wednesday as prices crashed further.
Dollar drops and stocks rally: The week of reckoning for US economic data
Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.
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