I upload a new video on the Youtube Channel and wanted to provide you all with a live example of the dangers of trading bank holidays and why it should be avoided. As the world knows, today is a major holiday (Memorial Day) which means that 2 major currency pairs are closed for today. As a result, this can lead to slow volatility or sporadic volatility with other non-related pairs.
My #1 rule for trading news events is to avoid trading bank holidays completely altogether, regardless of the currency pair. One should also remember the 40min. news trading rule. Never trade 20 minutes leading up to a news event, and 20 minutes after a news event has already occurred (40min. avoidance period). By doing this, you allow the fundamentals to “cool off” before diving back into the charts and entering a trade.