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Jeannie gets into the basics on how to become a Professional Day Trader
Day Trading – Tight Trading Ranges – July 2010

In the middle of summer, it is common for trading volume to dry up as well as, trading ranges will become tighter. A common reason for this weakened trading activity is that many traders and investors use the summer months to vacation, which makes sense. The issue is, day traders and swing traders who are not vacationing need to develop an alternative trading strategy, for the summer season.

With July being the beginning of the second quarter earnings season period, there will continue to be many trading opportunities with positive rewards for the knowledgeable trader. However, day traders and swing traders will need to develop a method of trading which accounts for the tighter trading ranges. Traders may find they are holding an open position longer than usual however; the fact remains that all traders must maintain stop losses as well as, maintain cash trading accounts by the close of a trading session. Unless a trader wants to be an investor, no position should be held overnight.

Profit targets may need to be reduced in order to maintain a successful trading strategy. With the selection of bigger movement in stocks minimized, traders need to be more cautious on any stock they take a position in. With lower trading volume across the board, larger positions may be increasingly more difficult to exit.

Traders should consider brushing up on their trading skills by participating in Training Programs over the summer months. They have the chance to develop a successful trading strategy geared toward the summer season, with the help of professionals who have been in the markets for many years. Participating in a trading service with decades of combined market experience is priceless. Traders need to focus on trading assistance, for the summer trading season.

Traders should look to take advantage of potentially profitable trades during the summer season. The season allows traders the opportunity to analyze potential trades over a slightly longer period of time, before deciding to take a short term position. This time can be exceptionally valuable for new traders trading in demo-mode due to slower trading action. It can be a very rewarding trading experience for live trading as well as demo-trading since traders are generally allotted more time to act-and-react, on slower trading action.  Unless a trader is on vacation, it is wise to keep active in the markets and not fall out of the trading atmosphere. Even though traders may make fewer trades, it is always best to keep your trading foot in the water to keep abreast of overall market action.

There is no scheduled time or date when trading ranges loosen up, it happens at will, with no notice. Smart traders who maintain a daily appearance with the markets will see the improvement, when it occurs. Those traders who decide to sit on the sidelines during the summer trading season not only miss out on many good trading opportunities but also, hear about improved trading ranges instead of being part of the markets, day in, day out.


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