Holidays Season Trading - Increased volatility and risk

FX:GBPNZD   British Pound/New Zealand Dollar
I've been asked a lot about trading during Holidays Season.
There are several things you need to be aware of if you intend to trade during Holidays Season that starts this week:

1. Low liquidity - Market is thin as banks, funds, institutions and pro traders take time off
2. Unexpected moves and increased intra-day volatility . Aggressive price reaction to minor events.
3. Frequent False Breaks - Especially in volatile pairs like $GBPNZD

This $GBPNZD chart is a great example of how 300-400 pips range with 3 major structure zones held for more than 2 weeks. Notice the multiple False Breaks to all structure zones.

In order to manage through the Holidays period here are 3 tips:
1. Use smaller positions size.
2. Use wider stop loss - Focus on Major structures and trend lines
3. Take profits on short term targets and move stop loss to BE.

Tomer, The MarketZone
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