Why I Sit Out Holidays and Thin-Liquidity Days
Some of my worst trading days did not happen because my strategy was bad. They happened because I traded on days when the market was not normal.
Holidays, quiet sessions, and low-volume hours can make the charts look easy and feel safe. In my experience, they are the opposite. Let me explain why I now prefer to step back on these days.
Example: One day, I traded during a quiet holiday session because the chart looked calm and easy to read. I entered a trade expecting a small move, but the price suddenly jumped and hit my stop loss.
That taught me something simple: a quiet market does not always mean a safe market. Sometimes, fewer buyers and sellers can make prices move unexpectedly.
What Does Thin Liquidity Mean?
When I first heard the term thin liquidity, it sounded more complicated than it actually is.
Liquidity simply means how many buyers and sellers are active in the market at the same time.
I like to think of it like a busy fruit market. When lots of people are buying and selling, prices usually move more smoothly. But imagine visiting the same market on a quiet holiday, when only a few buyers and sellers are around. One large buyer could suddenly push the price higher because there aren't many sellers around.
Trading can work in a similar way. When fewer traders and institutions are active, even a relatively small order can sometimes move the price more than expected. That is why I became more careful about liquidity, especially during quieter market hours.
Busy Market | Thin Liquidity / Quiet Market |
Many buyers and sellers | Fewer buyers and sellers |
Orders are easier to match | Fewer orders are available |
Price usually moves more smoothly | Price can move suddenly |
When does the market get thin?
Big Holidays: Christmas, New Year, Good Friday, and major public holidays in countries like the US or UK. Many large traders and institutions may be away, trading activity can drop, and some brokers may change their market hours.
The Days Around Holidays: The market can start getting quieter before a major holiday and remain less active for a while afterward. Many traders take time off, so trading volume can drop, and price movements may become less predictable.
Example: The day before Christmas may look normal at first, but with fewer traders active, a trade can sometimes move differently than it would on a regular day.
The end of the trading day and the Sunday open, when fewer traders are active. I noticed this myself when checking trades on ABET, where some quieter periods could have less activity and less predictable price movement.
Quiet times between sessions, when one major market has closed and the next has not fully opened yet. During these periods, fewer traders may be active, which can sometimes make price movements less predictable.
The exact dates change every year, so I make it a habit to check the economic calendar and my broker’s holiday schedule before each week. It gives me a quick idea of which days might have lower activity or different trading hours.
What quiet, strange markets look like
Here is what I have noticed on these days:
1. The spread gets wider.
The cost of entering a trade can go up. A setup that looks good on the chart may already be expensive before it starts.
2. Price jumps for no clear reason.
You may see one sudden candle, then nothing for an hour. There is no news, but the price moves anyway.
3. Fake breakouts happen more.
Price pushes through a level, you enter, and then it comes right back. Small volume can make a weak move look strong.
4. Slippage can be bigger.
Your order may be filled at a worse price than you clicked, especially if you use market orders.
5. The Market Can Feel Boring, and That Is a Trap
Slow charts can make me impatient. When there is not much happening, I sometimes start looking for trades that are not really there.
I remember trading during a quiet holiday period when the chart was moving very slowly. I kept watching, waiting for something to happen, and eventually took a trade that I probably would have skipped on a normal day. The setup looked okay at first, but the spread was wider than I expected, and the price did not move the way I wanted.
That trade reminded me of something simple boredom is not a trading signal. Sometimes the best decision is to close the chart and wait for the market to become more active.
Why It Can Be Tricky, Especially for Beginners
On normal trading days, I usually have a better idea of how my setups behave because there is more activity in the market. But during thin periods, prices can behave differently. A sudden spike can hit my stop loss, only for the price to move back in the direction I expected.
That can be frustrating. If I am not careful, I can start thinking about getting that loss back and end up taking another trade too quickly.
The tricky part is that a quiet market doesn't always look dangerous. When the chart is barely moving, it is easy to relax and think there is less risk. But that can make me careless with my position size or entry.
For me, the lesson was simple a slow market does not automatically mean a safer market.
What I Do Instead
I check the calendar first. Before the week starts, I look at which days are holidays or likely to be quieter. That way, I know in advance when market activity might be different from normal.
I take fewer trades, or none. These days, I usually take one or two good setups, and sometimes none at all. On a thin day, I don't feel the need to prove anything to myself. If the setup isn't clear, I skip it. Sitting out is also a trading decision.
I use the time to review. On quiet days, I have more time to look through my past trades, spot mistakes, and think about what I want to improve the following week. It has become one of the most useful parts of my routine, and it doesn't cost anything.
I step away from the screen. When the market is slow, I might go for a walk, read, do other work, or simply close the screen. This helps me avoid falling back into my old habit of trading just because I am bored.
If I do trade, I keep it small. I use a smaller position size, check the spread before entering, and avoid chasing sudden moves. If the market doesn't give me a clear setup, I will wait.
I don't follow the noise. Holiday periods can bring plenty of headlines and sudden moves. Instead of reacting to every piece of news, I try to stick to my plan and only act when my setup is actually there.
What I Do | Short Explanation |
Check the calendar first | I check holidays and major events so I know when market activity may be different. |
Take fewer trades, or none | I stick to one or two clear setups and skip trades that don't meet my rules. |
Use the time to review | I review past trades, identify mistakes, and plan what to improve. |
Step away from the screen | I take a break or focus on other things instead of trading out of boredom. |
Keep trades small | If I trade, I use a smaller position size, check the spread, and avoid chasing sudden moves. |
Don't follow the noise | I avoid reacting to every headline and stick to my trading plan. |
But won't I miss opportunities.
I used to think so. Now I see it differently. There is always another day and another setup. Missing a poor quality day costs me nothing. Taking one bad trade on a strange day can cost me a lot more.
For example, I take a trade only when:
Price reaches a clear support or resistance level.
The trend direction is clear.
I see a confirmation candle or pattern.
My risk and stop loss are within my rules.
There is no major news right ahead.
Before entering a trade on a holiday, I like to take a few extra seconds to check the market conditions.
A simple checklist before you trade on a holiday
Is it a public holiday in a major country?
Is the spread wider than usual?
Is the market moving in jumps with no news?
Am I bored, or do I really see a setup?
If most answers worry you, it may be a good day to close the platform and rest.
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