Should you take a break from trading in the summer?

That old cliche about low volume activity in the summer - yeah, it's no longer true

So summer comes and people from all walks of life start taking holidays. There's presumably less news to move the market, because... well, most of the people that usually move them are on holiday.

It's true - markets are moved mostly from institutional investors and traders like investment banks that come with their tytanical wads of cash. And many of them take breaks, which means lower volumes. While that may be true it shouldn't be exaggerated.

This is really one of those things that used to be true before, but no longer is. Nowadays we have many technological improvements that help us offset the dready effects of summer. This belief took hold at a time when forex trading was primarily done on forex trading floors by guys shouting, How times have changed. Now much of it is automated which means volumes don't stop.

As silly as it may sound another explanations could be air-conditioning - people become more sleepy and less efficient when it's hot. This is the innovation that boosted white collar productivity the most since the advent of coffee.

See also: The best traders do nothing 99% of the time

 

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