Dukascopy: ECN forex broker offers best spreads, marketplace and highest liquidity for online forex trading.

Tuesday, August 27, 2013

How to trade Quiet Summer Market

The market has been very quiet and less liquid the past month. Mainly this is due to summer inactivity when most fund managers go on holiday. Having said that, if you were a swing trader these past months it has been very difficult to trade. The most difficult thing is to sit there and wait for your trading opportunity. This may take a very long time. Patience I find is a killer for new traders. One way to to offset this is to go into the shorter times frames. What I have found is that the market ebbs and flows in many different directiions. If you were to give me a chart and tell me to guess what time frame it was in, it didn't really matter to me. What really matters is how the price action trends. I've seen 5 min charts trend so well that you could make a killing in the market. Same could be said about 15 min. charts or even 1 hour charts. The only other factor is the time. Price action on the 5 min charts are faster than 1 hour charts. I truly believe when we see things in clarity, this is when our trading excels. So don't just sit there on the 4 hour charts. Learn to read lower time frames and you will see greater success.