Forex Trading During The August Lull
Of course there are plenty of opportunities to trade very month, even slower months like August. Our Forex Trading Team has been closely monitoring the Forex market and is ready to send signals as soon as our criteria to trade is achieved.
Why is August trading so slow?
It is not like August has no opportunity to trade. But its just a little slower than other months, such as September. Can we blame all those vacationing traders? Maybe.
Of course it is the large institutions that move the market, and not the individual trader, but if the employees who have the authority and resources to enter large trades are on vacation, this can cause a decrease in large trades during August and a general drop in market liquidity.
Maybe all those traders decided to go on vacation knowing that as usual, there is sparse economic data releases this month and not a lot to move the market.
Most Forex traders consider September the unofficial “new year” for the market and plan to go full throttle after September 1st, so in August traders close their eyes to get some rest before then.
Bottom line: Experienced Forex traders know they can’t force a market to react when the market itself is reluctant to make any major moves.
3 Tips For Trading During The August Lull
The effect of the lackluster market movement in August is that trends tend to be smaller and less explosive. It is common to see false breakouts in August as the markets try to emerge past an established level but doesn’t have the legs to follow through. This is no doubt because usually breakouts require large trading volumes, but the market in August usually doesn’t have enough conviction to get us there.
Tip 1: Traders are wise to revise their profit-taking objectives during August and may resolve to aim for smaller profits during the market slowdown.
Tip 2: Have patience and wait for your Forex trading criteria to confirm. Do not trade just for the sake of trading, especially during low-liquidity months.
Tip 3: If you haven’t taken a vacation in a while, now is your chance. Rest up and recharge, September trading is around the corner!
Forex Signals During August
Since there are likely not as many good trading opportunities during the slow end-of-summer (or end-of-winter if you are on the other side of the world) lull, it is not like the market does not move at all, and there is still potential for us to send many Forex signals to our members all over the world.
Regardless of the month, our ForexSignal Trading Team resolve stays exactly the same all year:
Provide high quality Forex signals, not just a high quantity of signals.
We look forward to finding the best quality trades for the remainder of August.