Summer has always been a season for rest and relaxation. Even when one has work commitments, the bright sunshine and pleasant temperatures create an atmosphere for relaxation.
For financial markets, summer is also a kind of vacation. After nine months of hard work by big capital and financial organizations, the markets need to cool down in order to continue making strong trend movements.
The circumstance why summer is a general period of calm in the market is a vacation. Retail traders, who form the main liquidity, are out of the market. Participants with large capital take advantage of this and also decide not to apply their actions on illiquid instruments. It can be said that retail traders determine when large participants will have a rest.
If we generalize, this is the reason why the market is massively sideways in summer, except in isolated cases. The summer decline in market activity is a seasonal phenomenon related to the behavioral characteristics of the participants. It should be taken into account when trading and planning strategies.
At this time it is necessary to remember that if there are no situations, the reason is not in the trader, but in the market. There is no need to try to make money in an illiquid market. There is a rule in trading: you need to know what to trade, when to trade and when not to trade.
In the period of financial doldrums you can save your deposit by taking a break from the market or devoting time to training and improving your trading skills.
The brain needs care, as it is this organ that makes money on the market. You can start to take more walks, go out of town more often or, if there is such an opportunity, organize a small trip where you have not been.
But if the serious mood for fruitful work is not lost even in summer, it is time to analyze your trading for the last time. Study your trades thoroughly, the reasons for entry and exit and understand what your trading strategy lacks for more profit. And then by the fall you will be well-equipped for further earnings in this difficult craft.
Pay attention to reading. Instead of focusing on trading books, it is recommended to turn to psychology literature. You are unlikely to find real secrets of successful trading in trading books, as experienced market participants will not spread their valuable knowledge to the masses.
You have to come to this knowledge yourself, so psychology books will definitely help. For starters, you can read “Antifragility. How to Profit from Hausa” and “Are We Smart Enough to Judge the Intelligence of Animals?”. These two are great for improving your skils in psychology, understanding yourself and consequently trading.
