Gonçalo Moreira's Summer Recommendations
International Trading
1. What Are Your Recommendations On How To Trade Forex This Summer? What Should Be The Trader's Tasks In August? What Should We Prepare Before Leaving For Holidays?
The price action in most major pairs during the last 6 to 8 weeks has been one of correction of those impulsive movements seen in the 1st and 2nd quarter of the year. The speed of correction has been practically the same of the previous impulse, so I wouldn't take a slow price action during August for granted - instead I prefer to be prepared for possible cascades in price due to thinner market conditions. This means, having always a protective stop, and do not close a position to soon if going profitable!
If you can't let go the charts and need to keep an eye to the market, there is something I'm enjoying to do at the moment: try one of the mirror platforms that are offered out there and enjoy playing the hedge fund manager during your holiday!2. What Book Do You Recommend Us To Read This Summer?
Last summer I read "Trading in The Zone" for the second time so I recommend Mark Douglas' book to anyone who hasn't read it yet. Should the high temperatures prevent you from any type of introspective work, then why not reinforcing your analytical skills with James Chen's most recent book "Essentials of Technical Analysis for Financial Markets".3. What Should We Do When Returning To The Markets In September And What Is Your Forecast For The Major Currencies In Q4?
For those taking a break I would recommend starting the first week after vacation by trading on a demo account, just to get the feel for the market. This is specially useful if market conditions have changed during the time we were away from it.
Should we see a strong continuation of the dollar strength as in the first half of the year, I would consider those conditions to unfold until December or even Q1 2011. This means, ride the trend if you are a trend follower. For those who are swing and range trading, I recommend taking smaller profits in those positions against the trend and larger profits when going with it.
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Gonçalo Moreira is Expert Advisor at FXstreet.com and author of the Learning Center. As a FX trader with over 7 years of experience, he honed his analytic and strategic skills through graduate level studies in financial markets. [More about Gonçalo Moreira]
