A very quiet open of the trading week with half of Asian markets on holiday. But it hasn’t always been like this. Exactly 6 years ago, on 6th October 2008 Eur/Usd gapped lower 100 pips and then continued to go down some more 200+ pips by the end of the day. The move in Eur/Jpy was even larger, with an opening gap of around 270 pips and a further 500 pips push lower. The reasons for those moves are less important if you trade the price off the charts. The important take away is that these things happen and that your trading strategy should have contingency plans for situations like these. When there isn’t much happening in the markets, it’s easy to get complacent, not putting stop losses for example, or putting very wide ones. Or leaving open large positions over weekend unaware of the risks involved. This is the kind of behavior that sooner or later will get the trader in big trouble.
”Those who don’t know history are doomed to repeat it. – Edmund Burke”