Forex Trading - Forex Investing In Summer?

Summer seems like a distant memory for those of us in the Northern Hemisphere … and so while now might not be the ideal time to look at forex investing in summer, it seemed the ideal follow on from last week’s how to trade forex articles - in particular, our last article about forex trading hours.

If you remember, in last week’s how to trade forex article we talked about how certain times of the day were better to trade than others. We also talked about how certain days of the week were better for forex investing than others and how certain days were better left alone - more so if you happened to be starting out in this forex trading adventure.

So where does summer fall in the do / do not trade time frames? As you can imagine, people take holidays in summer. What this means is that during the summer there are less people buying and selling on the market. This is turn makes the market less liquid.

Yes, in learning how to trade forex one of the most important things to remember is that it’s all about the liquidity. A liquid market could be considered like a glass of water - when you spill it the water runs quickly and easily. A less liquid market could be considered like a glass of oil - when you spill it it still runs everywhere but very slowly and much harder for it to get to everywhere that the water went. Forex investing is all about the liquidity.

In terms of money then, a liquid market is one where it is easy to buy and sell. Because of this the average pip movements are generally much greater, and more importantly, more consistent. In a less liquid market, there are less buyers and sellers. On average, currencies are likely to be traded in a smaller range BUT subject to greater fluctuations - e.g. you are more likely to suffer loss because markets don’t react as they normally would. In a smaller forex trading market it is easier for one big seller/buyer to have a drastic impact on the exchange rate.

Of course, the expert traders are generally able to make money still, but to be honest, a lot of them accept that it’s really just a good time to go on holiday and so they do. Forex investing may be 24/7, but the fact is it still takes a bit of a holiday.

So folks, if you’re a small player in the forex trading market then it is ultra important that you be even more careful during the summer season. Ideally, summer is a good time to go and enjoy your well-earned profits - it’s going to be much more fun and rewarding than sitting at home and possibly losing money!

Today’s lesson in How To Trade Forex is … take a summer holiday. Summer may be gone this year … but please keep this in mind for next year for your forex investing.

Refer A Client

If you have any friends who trade in the Forex market, and may be interested in joining ForexGen.com, why not get a FREE cash bonus from their trading activities?The referring party will receive $100 USD to their ForexGen account, at the end of the month in which the following criteria are met:

1. The referred party has opened a live standard account of at least $2,500 USD and has traded 20 round turn lots.

2. The referred party has opened a live mini account of at least $250 USD and trades 20 round turn lot, the referring party receives $10 to their ForexGen account.


For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com , or you can talk with one of our representatives on the live chat.