Summertime. What should I do?
Dreaming about white sand? Vacation on a boat? Hiking in the mountains? Road trip with your family? Or will you stay at home this summer? In any case, this is holiday season and market typically behaves differently... So what strategies should we adopt?
We've asked some of our contributors how theyrecommend to trade in August if you're not away on vacation... andwhat to do if you're going to leave for holidays and how to tradeupon your return.
They also give us their book recommendation for thesummer as well as their forecast for the rest of the year.
The questions for all the experts were:
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?
2. What book do you recommend us to read this summer?
3. What should we do when returning to the markets in September and what is your forecast for the major currencies in Q4?
Ed Ponsi
“It’s important to enforce discipline; if the market isn’t giving you a good chance to turn a profit, you have to sit tight or walk away […] Also, beware of rumors in the summer.” [Read all Ed's answers]Phil Newton
“There is only one thing to do: trade your plan. […] Assuming you have taken a break you should ease yourself back into your trading routine.”[Read all Phil's answers]Dr Sivaraman
“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.” [Read all Dr Sivaraman's answers]Marco Mayer
“I’ve seen both, summers where literally nothing happened and summers where the markets were completely crazy. You have to be prepared for both, when things slow down, so do I.” [Read all Marco's answers]John Jagerson
“If the market does slow this summer - I think it is the perfect time to start creating conditional plans not just for inflation but for a variety of potential market conditions that may emerge through the end of 2010 and 2011.”[Read all John's answers]Gonçalo Moreira
“I wouldn't take a slow price action during August for granted - instead I prefer to be prepared for possible cascades in price due to thinner market conditions.” [Read all Gonçalo's answers]
