About Day Trading: Holidays and Risk Management
| from Adam Milton Even though this week's trading newsletter happens on December 24th, and there is no trading for several days, there is always time to discuss risk management. This week's newsletter includes: - the holiday schedules for many markets, - the second of the risk management ratios, namely the win to loss ratio, - and the weekly economic calendar with volatility expectations. Unfortunately, there is no trading at the moment, so instead of good trading, I will say Merry Christmas :-) | | In the Spotlight | Economic Calendar With Volatility As you would expect with this week being the start of the Christmas and New Year holidays, this week's economic calendar includes only a few news releases from the US and Europe, and several news releases from Asia. The US has four high volatility news releases, while Europe and Asia only have one high volatility news release each. Markets from all three regions would usually continue experiencing high volatility throughout this week, but because of the holidays, almost every market will experience less trading activity than usual ... view the economic calendar | | Holiday Schedules The Christmas and New Year's holidays are the time of year that cause the most havoc for almost every market's trading schedule. Some markets are closed completely, some markets are closed some days but are open other days, and some markets have modified opening and closing times on several days. Knowing when your markets are open and closed is essential, otherwise you may find that you are stuck with an active trade, which you can't manage or exit until trading resumes after the holidays (during which anything could happen to affect your trade's profit and loss) ... view the holiday schedules | Win To Loss Ratio The win to loss ratio is one of the risk management ratios that are used to determine if a trading system is likely to be consistently profitable. Specifically, the win to loss ratio is a comparison of how many profitable trades to how many losing trades, a trading system or trader makes. For example, a win to loss ratio of 20:10 would indicate that a trader makes 20 profitable trades for every 10 losing trades ... find out about the win to loss ratio | Sponsored Links | | | | Day Trading Ads Advertisement | |