August 26, 2014
August has been quite an interesting month because despite the fact that volatility has been low in the previous few months, and August is notoriously quite a quiet month, we have actually had some decent price moves in recent weeks.
However I have just been looking through my trading records, and as I suspected, it is not the forex markets that I've been predominantly trading this month.
The two markets that I have traded the most (by quite a distance) are Crude Oil (US) and the Dow Jones, followed by the GBP/JPY pair, which is a pair that I don't usually tend to trade that much.
The reason why I have focused on these markets in particular is quite simple - these are some of the biggest movers on a day-to-day basis right now.
Whilst some of my favorite pairs, such as the GBP/USD, EUR/USD and USD/JPY pairs, have seen their average daily trading ranges drop quite considerably in the last few months or so, the GBP/JPY is still trading in an average range of 70-80 points every day.
The Crude Oil and Dow Jones markets have been better still because these will often trade in a range of 120-130 points on average every single day.
So there have clearly been plenty of opportunities to make some decent returns trading these three markets in particular.
With the EUR/USD and USD/JPY pairs trading in a range of around 40 points on average, it is obviously a lot harder to squeeze out any profits, which is why I haven't traded them very much this month.
Looking ahead I am hopeful that volumes will pick up across all of the major currency pairs once August is over, but for now I'm happy to trade some of the more volatile markets, particularly as I have been looking to enter a lot more out-of-the-money binary trades just recently.