Summer trading is different. As traders are headed to the beach, or elsewhere they choose to disconnect and get some rest, markets slow down, lose volume and become a bit more unpredictable.

That does not mean summer trading is worthless, but as Blake Morrow, founder of ForexAnalytix, says, with “trading ranges shrinking about a 1/3 of what you would normally expect, little spurts of volatility often can catch you off guard chasing a move or breakout, only to watch it fail or reverse”. Morrow proposes trying scalping or practicing “target trading” in smaller amounts as a way to get through the lack of liquidity of markets during these months minimizing the risk of an undesired drawdown.

If you rather have a more laid back time, summers are also good for reading and reflecting on the good, the bad and the ugly. The latter two are what we are focusing on in these series of articles, having put together some interesting tales and lessons learned from our best contributors during their lengthy careers. Nobody can excel at any kind of activity, and less so in the trading world, without first busting a couple of times.

This is what our most dedicated contributors learned in the process:

Trading psychology: Don’t let your emotions dictate your trading - This is a classic topic of trading educational articles. And it’s like that for actual solid reasons. Read how to surf the emotional wave of trading without drowning.

Wrong forex strategies: Don’t average down losing trades - Trying to correct a losing trade by doubling down with a lower entry price is another popular mistake. Everybody knows it but it is hard to avoid going down that way when losing on a trade you judged well.

Follow your forex plan: Don’t engage in reckless trading - Setting up some internal rules for your trading looks like a must first-step before setting up your account and getting into your platform. There are some nasty outcomes for those who ignore their own trading plan.

Day trading mistakes: Tales of how big trades went wrong - One way to learn from your past mistakes is having to go through the painful and challenging experience of explaining them. Another way is to hear from others who might have lived through some disgruntling trades.

Trading psychology: Don’t underestimate the risk - Assessing the risk of a trade is one of the biggest challenges any trader faces when planning the operations. It’s much easier to focus on the potential profits of a big trading opportunity spotted than calculating the potential losses one wrong turn can trigger.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Education feed

Editors’ Picks

EUR/USD breaks above 1.1100 amid EU hopes, US-Sino tensiosn

EUR/USD has hit a new two-month high above 1.11, amid hopes for a fiscal boost in Europe, and as growing Sino-American tensions seem to weigh on the dollar for a change. EZ inflation, US data, Trump's China speech, and end-of-month flows are in play.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

USD/JPY drops to near 2-week lows amid escalating US-China tensions

USD/JPY comes under some heavy selling pressure amid worsening US-China relations. The downfall confirms a stiff resistance near 50-day SMA, just ahead of the 108.00 mark. Friday’s key focus will be on Trump’s response to China’s security law for Hong Kong.

USD/JPY News

Editors’ Picks

EUR/USD breaks above 1.1100 amid EU hopes, US-Sino tensiosn

EUR/USD has hit a new two-month high above 1.11, amid hopes for a fiscal boost in Europe, and as growing Sino-American tensions seem to weigh on the dollar for a change. EZ inflation, US data, Trump's China speech, and end-of-month flows are in play.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

USD/JPY drops to near 2-week lows amid escalating US-China tensions

USD/JPY comes under some heavy selling pressure amid worsening US-China relations. The downfall confirms a stiff resistance near 50-day SMA, just ahead of the 108.00 mark. Friday’s key focus will be on Trump’s response to China’s security law for Hong Kong.

USD/JPY News

Cardano explodes over 1% in minutes, is $0.07 achievable on Friday?

Cardano is among the most active cryptocurrencies in the market this week. ADA/USD is exchanging hands at $0.0666 amid a battle to beat Thursday highs at $0.0680. On the other hand, the price has not been left behind especially after spiking by over 1% in a matter of minutes.

Read more

Gold pokes $1,721/23 resistance area

Gold prices extend the latest recovery from $1,711 as DXY refreshes two-month low. A confluence of 10-day EMA, nine-day-old falling trend line probes immediate upside. An ascending trend line from April 21 favors the bulls.

Gold News

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology