By: Charley Warady
The Forex news is on summer vacation. Well, there's news every day because there are people employed to write about Forex news, and analyze Forex markets, and author articles like this one. So, you are going to read every day about some kind of news that is affecting the Forex market and why. However, if you have taken a look at your charts, you can't help but notice the tight trading ranges on a daily basis; which leads one to believe that you can write all you want, but the Forex market knows it is summer.
Forex trading is difficult in such a tight Forex market. It calls for patience and discipline; two veritable curse words for many a Forex trader. That being said, there are still plenty of ways to make money in these kinds of markets and it doesn't involve dipping into the kids' college funds.
Expand your quantities. If you are ever going to feel like a big shot, these are the days to try it out. You can start out with a quantity larger than what you would normally trade in the regular Forex market. If you would like, as the market moves your way, lighten up your position. Take profits slowly and play around with the numbers. You shouldn't have to be bored and complaining about the market's inactivity. Become more committed and it will raise your level of interest. It will also raise your profits in a market that, according to the chart, isn't really going anywhere.
Become a position trader. Although normally you may be a day trader and never carry a position overnight; now might be the time to test these waters. As long as the Forex market is in an obvious trend, and it being the summer, there is little chance that the overnight risk is going to be too great. Even if something happens, you will always have the safety net of your stop-loss order to prevent a catastrophe. You might even like the feeling of riding out a position and decide to do it again in the fall. Now is the time to try it out.
If, by some strange chance, you happen to like scalping; to scalp in the summer Forex markets will be more or less an exercise in futility. With such a small trading range, trying to scalp Forex will feel like spinning your wheels. So, if you're used to scalping the market, now is the time to try something else. You might just like it. Even if you change your quantities to account for the lack of movement, you might be giving up all your profit to get out of your trades. It's inviting frustration, and who needs more frustration. It's summer! You don't need more heat.
There is no need to forsake your income because of the time of year. You just have to adjust accordingly and you'll find the profits are still there. You might even have some fun doing it.