Why is August volume so terrible historically?

Discussion in 'Trading' started by clearinghouse, Aug 27, 2012.

  1. I know the historical reasons, vacations, etc. But do you guys just stop trading in August? I'm asking a forum of traders and possibly brokers. For brokers, what are your clients even saying? Do they just put off buying stocks until after August?

    Do people really just take vacations in August? Or is this some self-reinforcing thing, where people just decide August isn't worth it?

    I guess I'm mystified by August, because most years it's been this way. But the disconnect in my world is that I don't actually see anyone in the room or even friends off taking a vacation.
  2. They do not JUST take vacations in August, but in many countries they take the MAIN vacations in august, and people being people and having children going away for 3-4 weeks is something you have to coordinate with schools ;)

    Yes, it is quite regularly a slow month for ALL sides - i.e. not only stock buying, but also company news and releases. Especially in preparation of the Christmas season, where all kinds of news and products are released ;)
  3. Tsing Tao

    Tsing Tao

    And then everyone comes home and pent up news/activity explodes in September and October.
  4. Yea... No reason to trade equities... Ranges are not high enough. Technical price strength is too strong... Etc! Shouldn't be much happening until after Jackson Hole.

    Just trading Forex until after the Bernanke speech.
  5. actually this has been a good month for me :)