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 clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
USD/JPY bounces of key level in softer NFP print
The Japanese Yen is set to lock in a staggering performance for this week against the US Dollar. The Yen has appreciated over 3% following Japan’s intervention to propel the currency and the Fed’s less-hawkish rhetoric. The US Dollar Index slips below 105.00 with softer NFP print.
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.
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