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Tuesday, 08/28/2012 11:07:12 AM

Tuesday, August 28, 2012 11:07:12 AM

Post# of 784
Light Volume Markets Can Be Tricky


As you know, the trading volume in the month of August 2012 has been extremely light. In fact, this year we have seen some of the lightest volume in the past 10 years. This trading period is also known as the summer doldrums. During this time, many inexperienced traders and investors try to force trades in light volume markets. That strategy is often the kiss of death. Light volume markets do not favor the individual investor or trader. The reason is because it is simply too easy for the institutional traders to bully the market in their favor. You see, the institutional trader has unlimited funds or deep pockets and if they are wrong they will simply work the position by averaging in and forcing the position into profitability. As an individual trader that cannot be done and the institutional traders know that. ...Continue reading here: http://bit.ly/MXG7Fk

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