Should one stop trading in august, because of low volume? | Forex Factory

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Should one stop trading in august, because of low volume?

  • #1
  • First Post: Jun 21, 2008 9:00pm Jun 21, 2008 9:00pm
I read in "mastering the trade" that you should take the whole month of august off due to low volume. John Carter (the author) mainly trades stocks. I was wondering if this applies to the forex market also? Not really intrested in an uninformed opinion on the matter. If you know something about it or have a link I could follow I'd really appreciate it. Thanks.

Randon
  • #2
  • Jun 22, 2008 5:07am Jun 22, 2008 5:07am
Reading is one thing... "DIGESTING" is another thing. Do your own analysis or thinking to verify what people write is true or not. Don't just follow others blindly. Be a thinker... not a follower.

Just do your own research on what happened to the Forex market last August... the year before... and before that... and so on. You can always scroll back the charts. Then you'll find the answer.

Am I helping?

  • #3
  • Jun 22, 2008 6:55am Jun 22, 2008 6:55am
Quoting Malaysia
Reading is one thing... "DIGESTING" is another thing. Do your own analysis or thinking to verify what people write is true or not. Don't just follow others blindly. Be a thinker... not a follower.

Just do your own research on what happened to the Forex market last August... the year before... and before that... and so on. You can always scroll back the charts. Then you'll find the answer.

Am I helping?

Well he's asking a question and you're basically saying, "not telling, find out yourself!" Lol.
  • #4
  • Jun 22, 2008 7:12am Jun 22, 2008 7:12am
Quoting forexmoments
Well he's asking a question and you're basically saying, "not telling, find out yourself!" Lol.
I am not giving the answer... I am just showing one of the possible ways on how to find the answer

Give the boy a fish... and you shall feed him for a day.

Teach the boy how to catch the fish (FISHING).... and you shall feed him for the rest of his life.

Peace
  • #5
  • Jun 22, 2008 7:43am Jun 22, 2008 7:43am
Doing the research myself... hmmm... nothing much can be deduce from that. Perhaps I shall scale down the TF a bit and see what really happened on AUGUST each year with the volume indicator turn on.

As for me... Business as usual as I am an IntraDay Trader. Except on Christmas holiday season period.

From my understanding... trading during LOW VOLUME environment can have 2 different effects.

1) It gonna be so boring with low volatility and market can be ranging tightly.

2) With low volume... market is vulnerable with manipulation. Easily move with BIG orders. Thus many spike, whipsaw, false breakout, false signal and so on.

This is just from my understanding... please correct me if I am wrong... as I am also learning.
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  • #6
  • Jun 22, 2008 10:01am Jun 22, 2008 10:01am
Malaysia-
I'll try that. I've heard holidays aren't good times to trade, but maybe the august thing is just for stocks.
  • #7
  • Jun 22, 2008 12:33pm Jun 22, 2008 12:33pm
Quoting Malaysia
I am not giving the answer... I am just showing one of the possible ways on how to find the answer

Peace
Hi sometimes is very hard to find the right answer you have to invest must time and energy to research a big market ...but we knoe Time =Money...
so never devaluate researches of other people which you got without effort...
Drastically Boost Your Trading Profits....
  • #8
  • Jun 23, 2008 7:20am Jun 23, 2008 7:20am
Quoting delijaworld
Hi sometimes is very hard to find the right answer you have to invest must time and energy to research a big market ...but we knoe Time =Money...
so never devaluate researches of other people which you got without effort...
Am I devaluating others reserach... I am just suggesting one possible way to find the answer.

Time also = Experience.

If you do the research yourself... than you'll have the EDGE.
  • #9
  • Jun 23, 2008 10:56am Jun 23, 2008 10:56am
Quoting randont
I read in "mastering the trade" that you should take the whole month of august off due to low volume. John Carter (the author) mainly trades stocks. I was wondering if this applies to the forex market also? Not really intrested in an uninformed opinion on the matter. If you know something about it or have a link I could follow I'd really appreciate it. Thanks.

Randon
All that bullshit and he didn't even answer your question. In the words of our esteemed British cousins, "What a wanker."

To answer your question, trade August. Just be more careful because the markets are thinner due to lots of Europeans and Americans taking their holidays during the month. Some folks have gotten killed in August while others have had great months. Just cut your risk back a bit and plug away.
  • #10
  • Jun 23, 2008 11:00am Jun 23, 2008 11:00am
Aslong as I find 15 pips everyday somewhere in August thats fine for me.
  • #11
  • Jun 23, 2008 12:01pm Jun 23, 2008 12:01pm
Quoting Dopey
All that bullshit and he didn't even answer your question. In the words of our esteemed British cousins, "What a wanker."

To answer your question, trade August. Just be more careful because the markets are thinner due to lots of Europeans and Americans taking their holidays during the month. Some folks have gotten killed in August while others have had great months. Just cut your risk back a bit and plug away.
Thank you! Finally a straight answer. I appreciate it.
  • #12
  • Jun 23, 2008 8:24pm Jun 23, 2008 8:24pm
i would agree with malaysia. the only time there is almost absolutely no trading liquidity is around Christmas. beacuse forex is a 24 hour global market, there is pretty much always movement. there are always opportunites for trading, you just gotta find them.
  • #13
  • Jun 24, 2008 6:13am Jun 24, 2008 6:13am
Shrug. I've had trouble trading anytime the euro-london session is slowed due to holiday. The US markets could fall into the ocean and it wouldn't matter that much, but even a minor holiday in the UK seems to kill it.

I'll be taking the last 2 weeks in December and the 1st week in January off to spend w/ family, read, shop, whatever. August won't even be a blip on the radar.
  • #14
  • Last Post: Jun 24, 2008 2:43pm Jun 24, 2008 2:43pm
thats what i would suggest doing.
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