October 12 is Columbus Day. As such, a lot of banks and businesses take the day off. However, the Forex market will remain open. This is tempting for those that have a desire to get into the market to trade. However, it would be wise for one to refrain.

Liquidity is incredibly low on US holidays. When the major players are not in the game, price is not susceptible to move in logical patterns as it typically would. The benefit one gains from liquidity is that the market offers a better opportunity to take advantage of price action. With low liquidity, price is more likely to move in an unpredictable range as opposed to a trend.

Pricing as well is completely irregular. With low liquidity it doesn’t take much for price to be pushed around if someone stepped up to the plate and placed a large order. As such technical analysis is more likely to fail to do the unstable nature.

As well, price can take a steep turn in direction only to be quickly corrected. This should be of concern to day traders who keep narrow stops. You might find that it takes hours for your trade to slowly move in the right direction, only for it to spike up, knock out your stop, and start the decline back towards your original profit target.

Trading can be stressful enough at times. There is no sense on trading on a day where you are minimizing your edge in the market. Enjoy this extra day of vacation. Spend time with your family and friends. Watch a movie. Catch up on chores. The market will be back in full swing on the day after the holiday.

Now I know I typically tell one to avoid something, only to give a a recommended way for those that choose to trade anyways. In this case, I really do not have a recommended way to trade on a holiday. It truly defies the logic of why you are doing in the Forex market. Are you looking to profit or are you looking merely to trade for the sake of trading?

It is entirely understandable for one to want to keep their head in the game on a holiday, simply for the sake of doing so. If that were the case, then I would recommend strategizing. Review the FX Trading Network’s Boot Camp. Backdate a trading system. Or even take the time to look at one of the FX Trading Networks recommended forex brokers. Do whatever you need to do to get our fill of Forex. Just keep your money out of the market.

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