Why the First Two Weeks of April are Terrible for Trading

Hey everyone, I’m Kathy. This is my trading partner Boris. We’re going to talk about why the first two weeks of April are terrible for trading and it’s basically chop city. Of course, you want to elaborate. Sure, you know the funny thing is that…

Market Liquidity Dries Up

Almost everybody forgets that the first two weeks of April every single year are really a terrible time for trading. The reason, of course, is kind of obvious – it’s holiday time. It’s Passover, it’s Easter, there’s a lot of springtime vacations, so everybody kind of goes away and liquidity really dries up. Many of the Anglo-Saxon countries where the FX is really traded have lots of holidays. You know, it’s almost as bad as Christmas week. As a matter of fact…

Seasonality and Performance

It’s funny, we were talking about this earlier. You had looked at your track record during this time of the year a couple of years back and you realized that, wow, it really is very bad, volatility-wise or liquidity-wise. And that’s kind of why I wanted to share this with everyone because, to be honest, I didn’t really think about it. When you talked about how usually this is chop city, I went back to my performance in the past three years and…

Trading Tactics

Within these choppy conditions, I think it’s really important to keep your targets much tighter and take them as they come. If you are going to trade, you’ve got to be like a ninja – in and out and just try to grab those profits when you get them. Keep your position sizes small and don’t expect big moves. And once we get to non-farm payrolls, that’s really going to set the stage for the rest of the month because that’s really what everyone’s watching. The market’s pricing in aggressive rate cuts and…

Market Outlook

For now, it’s a wait and see mode. There’s no reason to be a hero and there’s certainly no reason to really widen the net a lot of in here with large size into a very shallow pool of liquidity. Nobody’s playing the game, so you might as well just sit this one out. Go relax, go to the park, enjoy the sunshine for the spring. Over and out. Take care guys. Bye-bye.