Expect a Different Market Come Tuesday
September 1, 2006 by Trader Rich
Globetrader's blog brought up a very good point:
"Prepare yourself mentally for a change. The last 4 weeks saw low volume trading with this week showing usually the lowest volume of the whole summer. Next week everything will change. After
Labor Day, the summer vacations are over and everyone will be back in
full force, eager to show the market, that he or she is still in
command. So prepare yourself for a different type of trading, maybe
start it lighter early next week, so you can adapt to the changed
environment."
I've worked on trading desks on Wall Street and the following is quite evident during the summer:
- There are less traders on the floor
- There are more traders on the floor talking about golf
- There are more traders on the floor lobbing giant spitballs around
After only trading for about a year, I'm not as cognizant of the seasonal changes of the market. But there is no question that with September comes School Bus traffic and market volatility.
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Hi Rich,
How’s your trading going, making headway?
Craig, I wish I was making some headway. I actually haven’t been trading much. I’ve been doing a lot of paper trading because I’ve been so damn inconsistent. How about you? How’s your trading?
I have been profitable for about a month now, this is manually trading on the daily charts. Ironically, this started from just wanting to releave bordom whilst waiting for backtests to finish, I still haven’t been able to develop a profitable automated system
Just using support and resistance on daily charts, picked a bunch of pairs which seem to trend without to much volatility, averaging about 2-3% gain per week.
This may not seem like much, but it’s better than my usual account annihilation!
Craig, that’s great. Congrats. Sometimes things just work out that way when you least expect. Like you, I’m still searching for a profitable automated system and wondering if there ever could be one for an extended period of time. I’ll keep searching though because it’s become a hobby…