Hello guuuys! I know itās pretty early in August so itās acceptable (I hope ) that I havenāt had a winning trade so far.
I was just talking to a friend from a stock brokerage firm about this and she told me that in stocks, August is usually their ādead month.ā She said that since Chinese traders donāt trade during this month, there isnāt really much going on. I was just wondering if this has any impact on the forex market as well? What do you guys think?
P.S. Iām sorry if itās a stupid question. Huhuhu. But super thanks!
This is a traditional claim in equities but in forex I think it depends on what type of trading one is doing. Certainly, there are less speculative punters active, but the fundamentals and commerce keep rolling along.
If one is a short term trader looking for 10-150 pip moves then I donāt think August is especially dead. But it may be that new trends are slow to evolve if there is nothing to promote them. For example, Dennisā SW thread has been talking about ranging markets for a while now.
But I just produced this weekly chart of EU showing the Aug periods from years 2013 to now and I donāt believe there is anything there that stands out as abnormally flat and lifeless compared with the activity either side of the Aug rings?. So trading is still alive and well in August, albeit, maybe, with a shorter trade duration timeframe in mind and a more conservative profit expectation (we do only think about profit expectations donāt we? )?
It has been just a few days in August already and the markets have been more active just these few days than in all July combined. So no, I donāt think that the August is a dead month at all
I think it varies from pair to pair. Thereās always money exchanging hands somewhere, so you just need to find the right pair to trade.
Donāt know about you guys but when its so hot out my brain doesnāt functionā¦definitely better to stay out of the market than risk what youāre not sure about. So yeah August is vacation time
The chart that Manxx posted above gave me an idea.
I decided to pick a pair and a year at random, and look at all 12 months, to see whether August appeared ādeadā compared to the other months.
The following 12 charts are January through December of a recent year. The charts are all the same pair and are all 4-hour. Each chart covers a one-month period. Dates on the x-axis and prices on the y-axis have been removed from each chart.
The 12 charts (which I have numbered 1 through 12) are presented here in random order.
Oh wooow! Thank you so much guys for your responses! Interesting to see different opinions, though. Huhuhu. Is it possible that it depends on the trader? But then I thought, how could it be dependent on the trader when weāre basically looking at the same market? Huhu. Anyway, thank you guuuuys!
Oh. I didnāt know that. Itās not really the vacation season here in the Philippines so I guess I didnāt really think of August as the āvacation season.ā
OH MY! This is super interesting! Thank you so much for putting this together @Clint! I havenāt been trading for a long time so I havenāt really had the chance to compare my trading experiences for each month. But super thanks for this!
Iām gonna go with Chart #5 just because it seems to be the chart with the most ranging market??? Tbh, Iām so not sure. Iāll definitely wait up for the answer. Haha. Thanks again, Clint!
Wow. Looks like August has been good to you so far. I wish I had the same fate. Anyway, yeah. That makes sense. I only look at GBPUSD and EURUSD (and sometimes USDJPY) since Iām following a system so in my case, it might be a bit risky to trade other pairs. Huhu.
I know itās pretty early in August so itās acceptable (I hope 
) that I havenāt had a winning trade so far. 
She said that since Chinese traders donāt trade during this month, there isnāt really much going on. 
I was just wondering if this has any impact on the forex market as well? 
What do you guys think? 
But super thanks! 
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But then I thought, how could it be dependent on the trader when weāre basically looking at the same market? Huhu. 