Zero Volume – Can You Hang On?

It gets increasingly more difficult to “conjure up” any kind of meaningful analysis or even “mildly interesting” market commentary these days with currency markets literally – ground to a halt.

The amount of trade volume across “all asset classes” is “so low” right now I even see tiny holes/spaces between candles in a number of my charts! That’s what I call “low volume”.

It’s dangerous. Very dangerous as the “lack of movement” tends to grind away on you psychologically and often contributes to “poor decision-making”. Positions sit “lifeless and flat” new trades go nowhere and no matter what you seem to do “nothing” produces more than a couple of points here or there.

How long can one remain patient? How long can one remain “solvent”?

If we’ve learned anything over these past few months “Monday’s” are certainly not the day for any kind of rash decision-making, as these days the “Sunday night levitation” has become pretty much standard.

There’s nothing you can do. Just thank your lucky stars you’ve continued to trade small and just let this run it’s course as this low volume “ramp job” stuff can be extremely misleading.



1 Response

  1. Buena June 2, 2014 / 9:04 pm

    Agreed, it’s not the same environment as the glory ole days, and yes -goal is capital preservation not aggressive returns. Volatility will come back up (sooner hopefully than latter lol). I guess scale up the analysis to capturing larger moves, and hand-pick them for now. At least that’s how I think I should do it!

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