Historically summer trading is quiet, last year we had unprecedented volatility but usually summer is a time money managers and traders get away from the screens. News flow can change things of course but being prepared for a quiet 6-8 weeks in the markets is prudent:
- Decrease position size – As a daytrader summer is rarely a time for full size positions
- Don’t chase markets – Use $TICK’s and oscillators to help guide you
- Use the time for research – Set alerts and use the downtime to work on your trading theory, plan and goals
- Keep the moves in perspective – Chart scales, and little bursts on the tape need to be taken in context
- Preserve capital – Cutting losers may not be glamorous but it’s a great way of dramatically increasing your annual net PnL
