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If you often trade in IQ Option at the year-end, you may hear some advice like not to trade during holidays such as Christmas and the end of the year. This is because it makes you easy to lose during trading. Today, I will clarify the issue related to the market within the last days of the year. At the same time, I’ll answer the question: ”Should we trade in the year-end days or not?”.
Do you remember last year’s Christmas holidays? I hope you had a great time with your family.
I think most of us need time to rest and recharge ourselves during holidays like Christmas, right? Likewise, the Forex market also needs time to rest and refresh.
I would never recommend opening an order on a real account from December 24 to January 1. Below are important reasons that investors should avoid trading in the last days of the year.
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Low liquidity at the end of the year
The main reason for the gradual decrease in liquidity of the market is that the foreign exchange market ”sharks” (major fund managers, banks, and super-institutions) are not interested in entering the market in the last days of the year. They know what to do and they would rather spend time resting than sitting in front of a computer. These “sharks” give us a piece of advice: Don’t enter the market during the last days of the year.
I don’t think it’s a good idea to enter the Forex market at the end of the year. While others are completing the annual report before going on a holiday, you dig down to find entry points on the computer screen. Everyone has a family, so take time to take care of them. Money is very important. However, compared to family affection, it doesn’t make any sense.
You can trade for life. The market will still be there tomorrow. There is no reason for you to relentlessly exchange health, time, and money when the market loses liquidity. Take a break from work and rest to reduce mental and physical fatigue. It’s good to start a new battle in the first days of the year in the best state.
Low volatility
The proof of low volatility is clearly shown on the chart. Top Forex traders will stay out of the market at this point. That means no one will be strong enough to make the market fluctuate strongly. When there is no push from big traders, the market cannot create a trend. As a result, retail traders will not be able to make the desired profit.
If so, what about investors who profit from trendless trades? Stop, of course. Why do we have to trade when we can’t make money? Don’t try to earn some extra while everyone is resting, especially in trading. It is not as simple as other work in which if you try to work more hours, you will get more money. On the contrary, if you try even a little bit more, you may destroy the profits you have traded in the past year.
Do not sit there waiting for the meager opportunities of the market at the end of the year. Instead, plan a trip to enjoy the thing you’ve never experienced in life before. I know you are a diligent trader. However, in the purely financial mind game, the moments of trying often bring you bad results.
The unpredictable state of the Forex trading market at the end of the year
Because of the low liquidity and volatility, the price will not follow a single trend. The price can move up or down very sharply in just 1 minute. There will be no chance for you to react to the direction of the market. During market breaks, do not use your trading strategies or automated indicators because they are no longer effective at that time.
As a longtime IQ Option trader, I would say that most systems are programmed to follow strict rules based on technical indicators or trading criteria. During the year-end days, the market can deceive the sophisticated algorithm of top reliable technical indicators and possibly cause a huge loss to your account.
Trading is like a game of probability to me. I only trade when I ensure the probability of winning is many times higher than the risk. Do not test your luck by guessing the direction of the market. If your probability of winning is not high when trading at the end of the year, it is best to turn off your computer to do other things.
Take time to rest after a year trading in IQ Option
Surely, you also own a smartphone. You also understand that when the battery runs out, it cannot be operated anymore. Your body is just the same. When you work continuously at full capacity without taking a break, it will be more likely to ”go on a strike”. Therefore, the holidays are a great opportunity to relax, rest, and recharge to continue your trading in the future.
The year-end Forex market is not the right time to open an order. Better yet, you should spend time for yourself and with your family rather than focusing on the chart.
When your body is tired from the continuous activity, the mind is no longer alert. That causes your final decisions to be no longer correct. It leads to results that are not as expected. So why don’t we rest when it can be the best and most effective way to keep our money.
Tournaments in IQ Option are for traders who want to try hard at the end of the year
If you are someone who cannot be happy to lift your butt off your trading place, try the tournaments organized by IQ Option every month. Maybe it will help you gain more experience when you compete with other trades.
What is important is that the reward is extremely valuable compared to the small amount of participation fee. You can hit two birds with one stone when it helps your trading and if you are lucky, you can earn a bonus. While others relax and relieve stress, you can gain more experience and money. This is not bad at all.
Think of it as a place to practice with a fairly small participation fee of about $2-20. Focus on perfecting your trading system to prepare for the hunt next year. It is important to change your strategy until it is so perfect that it cannot be changed anymore.
To sum up
Up to here, you may have understood why the year-end transactions make it easy for you to lose money. If possible, set up a schedule for the year-end rest.
Use the money in exchange for serenity and peace. Do not hold onto the annual trading profits and then put pressure on yourself. Think of money as an instrument, not everything. The most important thing is yourself, so you need to take good care of yourself while you can. Have a very nice year-end holiday.
Registrera IQ Option och få gratis $10.000 Risk warning: Your capital might be at risk.
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