The second quarter of 2018 is almost over and we are in the summer of 2018. When it comes to trading the forex market, what should be taken into account by traders is that they need to take into account a few aspects if they want to place orders during this period. 2018 has some specific characteristics and that is why we want to discuss a few things that any forex trader should take into account.
World Cup in Russia
The 2018 World Cup will start on June 14th, and it is a unique event that will take place this time in Russia. It happens in a period of rising geopolitical tensions, so it should be worth watching how politicians will be hanging around with each other during the matches, in order to have a picture on how the bonds between nations could evolve in the future.
Trading the Forex market
Before starting to trade in this summer, if you have little background in the market, you will need to take into account that a different mindset for forex trading is required. Usually, during summer, volatility drops due to investors being on vacation.
Although in the last few years that had not been the case, with markets active during summers due to unexpected events that occurred, this year the markets should be subdued at least during the World Cup.
What should you do if you still want to trade?
Maybe some of you can’t afford to go on an expensive vacation or simply want to continue trading during this period.
If that is the case, you will need to make some adjustments to your strategy.
- Trade volatile pairs – GBPJPY, GBPNZD, GBPAUD or other exotic pairs tend to be better for trading during periods when volatility is low.
- Shorten your stop losses and take profits – since the markets are not moving as much as usual, you should have tighter targets and limits, so you won’t be forced to wait for a lot of time until the market reached your levels.
- Diversify with other assets – you could add stock market indices like Dow Jones or DAX30. Cryptocurrencies could also be good for trading during this summer, considering that volatility is not so wild anymore and regulation could be soon in play.
With that being said, hope we managed to help you with some pieces of advice on how to trade during the 2018 summers. Wish you all the best with forex trading!