Summer Trading Checklist

Summer trading is in full swing. That doesn’t mean the markets aren’t moving, they are. But the rhythm changes slightly. The structure and feel of price is different. It’s a bit more stop, start. A little bit more erratic and the volatility expansions and contractions seem wider.

So what does it mean for us?

I know some traders who take 4 weeks off. Mr. W, our long-only Nasdaq trader from the developing trader series hasn’t traded for a month! He’s in no rush to get involved. Maybe you don’t want to take time off, and that’s ok.

Strict filtering criteria can be the next best thing. Let’s assume you day trade the Nasdaq… This could be your checklist:

“To consider getting involved I must have:”

1. A wide overnight range
2. A large gap
3. A good setup on the daily chart

“I will watch price for 90 mins and if there is no trade setup, I will set alerts at key levels and walk away.”

This keeps you available for the best possible trade setups, but keeps you out of the chop.

Because the chop is a day trader’s kryptonite. And our number one goal as traders is to avoid getting caught in it. Consider how you could tighten up your trading rules over the next few weeks to keep you out of unpleasant markets…