1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays?
When a trader needs to spend the summer with the family, relatives or friends then it is better to take very less position now on and try to close the positions before going off. Keep the mind cool and give importance to the vacation and avoid thinking about market when engaged with other task - not even look at the market.When you come back after vacation the market would have either gone up or come down – we can always understand the market in a day or 2 based on the trend, fresh trades could be made. Market keeps giving opportunities to earn. If one wants to do trades while enjoying holidays then do 1 lot position trade identifying the extreme levels ( limitations) and keep lower level buy or higher level sell orders - whichever is filled you may keep a stop and limit of 50-60 pips. We could see the trade being closed at ease. Less trade to get more comfort. Probably when you avoid watching the market very frequently you may see better trades happening during summer - since the volume will be considerably low the adverse situations may not be seen. It is similar to doing either way swing trades before any data release time.
2. What book do you recommend us to read this summer?
Frequent distractions and outing may give better insight. I think one should do self reflection on the trades done and what mistakes or right thing done during such trades could give more trading insight. Traders have more of mannerism ( individualistic behavior) than common herd mentality, so all psychological conditions may not be common. Self reflection during non trading time could be the best book to spend with according to me. It is known that Great people have done more of self reflections than studies.3.What should we do when returning to the markets in September and what is your forecast for the major currencies in Q4?
Expect the unexpected and come back to market with open mind – the market could give us either buy and sell or sell and buy trade opportunity. Avoid giving importance to levels and focus on the identification of potential trade to earn. For Example – buy at 1.2800 and book profit at 1.2850 is similar to buy at 1.3050 and book profit at 1.3100. Or a sell and buy trade of sell at 1,3100 and close with profit at 1.3050. So focus on profit objectives and never feel you have missed the opportunity.During Q4 EURO,GBP and USD/YEN are expected to gain about 400-900 pips from current range.
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Dr S. Sivaraman is CEO and Owner of i-knowindices.com. He is providing Forex market forecast through to various subscribed financial institutions, banks,and traders of different parts of the world. [More about Dr Sivaraman]
