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Summer Trading Technique!
By Sean Hyman | June 29, 2009
In the summer, all financial markets havea tendency to die down and become more calm. Why? Because the very biggest of traders tend to take long summer vacations. In fact, many of the biggest traders may be out the entire summer (in stocks, forex, etc.). They will leave only “junior traders” on their trading desks which don’t have the authority to throw around the big bucks.Therefore, the markets in the summer (FX included) tends to be somewhat range bound. Therefore, I’d suggest taking this approach. Buy fundamentally strong currencies on pull backs and earn their higher yields daily while playing only the “long” side of the range. That way, if you get a breakout in the direction of the major uptrend, you’re still in the game and never counter to it. So being a buyer of AUD/USD or AUD/JPY for instance, on its pull backs could be a way to play this.
Tags: AUD, breakout, buck, currencies, dow, financial, forex, fundamental, fx, jpy, market, stock, stocks, trade, trader, trading, trend, uptrend, USD
Topics: What To Look At In The Market | 1 Comment »
July 2nd, 2009 at 7:09 am
I enjoyed reading your post.Thank you.