As summer winds down and the “big shot” traders come back to rule the roost; we small spec players have to thank our lucky stars for these two residuals of summer trading:

1. Range trading played by the big name computer systems — So organized, efficient, synchronized, and PREDICTABLE..This is where being diligent and observant of each currency pair ranges and the many range breaks can help us make a handsome profit.

2. Algos and related software…of the “real money” firms activated in the summer to avoid unnecessary risk and maintain the ranges of the forex market.

It is within these two parameters that we spec traders can make a wonderful profit…so much so that I am seriously thinking about just trading July and August (on a large scale) in the future..

Let me know your feelings about this trading trend and how your trading book did this summer..

In the words of Gerry Davies- Now is the time to enjoy your cans and don’t give it back in September–

Another in a series of writings to help better understand the psychology of a trader’s trade…We all have heard of the “rules of trading” — One of these rules is never try to pick the top or the bottom of a a trend or a move.. Most successful traders follow these rules like the ten commandments but of course, since we are human, we sometimes “sin” by using stochastics, experience, or just our instincts…The question is – when we do try to pick a bottom or a top, are we more profitable when we pick oversold or overbought conditions…?