We all need a break from the humdrum pace of life from time to time. In order to decompress from work and to gain a more balanced perspective, holidays can prove to be powerful options. However, there are inevitably times when we will need to access online trading portals even when away from the office. This is particularly relevant for Forex investors, as these markets are open 24 hours a day due to their global nature. Let us take a brief look at a handful of holiday trading tips as well as what to look out for when selecting an investment platform.
Know Your Markets
The currency arena is the largest marketplace in the world. Trillions of dollars change hands on a daily basis and market makers are constantly shuffling funds from one account to another. The main benefit here is that there is always potential money to be made. However, this can also represent a double-edged sword. It is best not to become too immersed within disparate markets while on holiday, as you will soon become overwhelmed and miss important short-term opportunities. Stick to familiar currencies such as the pound and the euro. Only take on more exotic positions if you are confident about their technical and fundamental aspects.
Keep the Latest News in Mind
The modern smartphone application enables us to access the Internet within only seconds. This is another key consideration, for late-breaking news can have a massive impact upon the value of a specific currency. For instance, analysts now believe that the pound will enter into bearish territory if the United Kingdom curtails its current plans for fiscal austerity (1). It would be impossible to learn this observation without enjoying real-time access to financial news sources. One great way to leverage this capability is to partner with centralised currency trading portals such as CMC Markets. Important updates are available at the click of a button; saving you time and energy.
Set Trading Hours
All work and no play makes Jack a dull boy. Never forget that you are on holiday for a reason. If you become too wrapped up in a specific investment, you will not be able to receive the rest and relaxation that you deserve. So, try to stipulate trading hours in advance and stick to these financial “windows”.
There are two advantages to this approach. First, setting discrete boundaries will allow you to become focused during active trading times. Secondly, you are much less likely to suffer from mental fatigue and make entirely avoidable mistakes.
Choosing the Best Hotel
We will often gauge our holiday by the amenities offered by the chosen hotel. Although not all of us will be privileged enough to reserve five-star luxury suites, be sure that your location possesses a reliable source of wireless Internet. If possible, enquire as to whether or not a conference hall is offered to guests.
If you are able to access a reliable source of wireless communications while at the hotel, you can schedule your trading hours accordingly. Let’s also not fail to mention that public hotspots (particularly in foreign countries) are not always reliable and their levels of security can be questionable. Choosing a hotel that guarantees unfettered access to the Internet is a very real concern to address.
Know When to Walk Away
One of the most common expressions when referring to gambling is that the house always wins. Although we should never equate currency trading with gambling, you still need to know when to call it a day. Set profit and loss margins. Once these benchmarks are reached, liquidate the position and take a step back. Never forget that the markets are not going anywhere!
Leveraging the ubiquitous presence of the Forex markets while taking a holiday can be a great way to earn a bit of extra liquidity. Also, many traders find that executing positions is a great deal of fun. Be sure to refer back to the suggestions mentioned previously in this article. You can then make the most out of currency trades without adding to the very same levels of stress that you are trying to escape.