One of the common inquiries new traders have is in regards to taking vacations. Like every other person, a trader does require vacations from time to time. So the question is whether to continue trading while being on vacation, to which extent, and how to overcome the obstacles.
Time off is good
The first thing I’d like to say about trading while on vacation is that although it may be tempting to trade indefinitely without any breaks, a little time off is good for the mind. People do need to destress from all the distress before they lose it… pun intended.
If for any reason you think of yourself as less of a trader or someone who is “slacking off work” by taking a vacation you should consider that the fact that the market is available 24/7 doesn’t mean you should work indefinitely. Also, keep in mind that pathological trading is a form of addiction which is not any better than alcohol or drug abuse.
I decided to trade while on vacation. How much should I be involved? How much of my time should be devoted to trading?
If you decided to engage in trading while on vacation in spite of the words of caution above, it will be extremely difficult to give you specific timeframes to trade in. Optimally, you’d like to spend some of your vacation doing something else than working, but it really depends on the market, the type of instruments you are trading on, and most importantly – how many open positions you have.
As a rule of thumb, if I am trading while on vacation, I try to stick to short daily sessions in the best times when the market is most active and never leave any position open. I know that personally, when I have open positions, my mind dwells there all the time, and if they happen to shut down on SL I will be very agitated. So the best way to avoid it is to simply make sure that by sessions’s end, all positions are closed. Is this any form of optimal trading? Of course not, but it’s better than spending all that vacation money while working full-time.
How to do it – practical tips
- When trading on vacation, make sure you use a Do Not Disturb sign on the door and explain to whomever you are traveling with that you will be working for this period and unable to attend to any other activities.
- Before you travel make sure you download a VPN software. Some countries block certain or all forex sites and platforms, and the VPN will help you surpass these hurdles (view comparison of options).
- Make sure you are traveling somewhere with a proper internet connection. Research whether the hotel’s Wi-Fi is good enough and stable enough for trading.
- Together with the usage of VPN that makes your connection more secure, be sure to download a firewall that will prevent anyone from hacking to your account through the Wi-Fi connection (or, better yet, do not use Wifi by buying a local modem).
- Trade on instruments you are familiar with and can anticipate their behaviour. On vacation, it’s about the worst time possible to experiment with new things.
Trading forex on vacation – conclusion
There is absolutely no reason to trade while on vacation. If you insist on doing in, then you should do some preparation ahead of time and stick to short sessions without any open positions.