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The end of the first week of August, and we’re now in one of the slowest periods of the year for trading. That doesn’t mean the market cannot move.
But it does mean the opportunity set can shrink as activity fades and dependable catalysts become harder to find.
The biggest earnings catalysts aside from Nvidia (NVDA) have dried up. Advanced Micro Devices (AMD), Broadcom (AVGO) and Texas Instruments (TXN) are behind us.
With fewer major reports driving large-cap chip stocks or the broader market, traders must be more selective about the setups they take.
This seasonal slowdown isn’t an excuse to ignore the market. It’s a reason to recognize that the tactics that worked during a catalyst-rich earnings season may not work as reliably in August.
The Double Whammy Facing Traders
If you’re struggling to find your rhythm, understand that it’s not just you. This isn’t only a hard market…
It’s also a hard seasonal period. You’re dealing with a double whammy.
Reduced activity, fewer catalysts and less volatility can shrink the opportunity set. Setups may take longer to develop, follow-through can become less reliable and the edge you normally depend on may be harder to execute.
That’s not necessarily a reflection of your skill — it’s part of the calendar.
You can’t trade this stretch the same way you trade a market packed with economic releases. Trying to maintain the same pace can lead to overtrading, weaker entries and unnecessary losses.
Sometimes the better strategic choice is to reduce your exposure and wait.
Make Capital Preservation the Priority
The key during periods like this is capital preservation. Don’t force trades because you’re bored or feel obligated to stay active. Wait for clear setups that fit your edge rather than lowering your standards to manufacture activity.
Take smaller positions, risk less per trade and exit when a setup fails to follow through. Set a daily loss limit before the session begins and stop when you reach it. Trade less frequently, keep more cash available and reserve your attention for the strongest opportunities.
If you’re not doing great right now, don’t be too hard on yourself. Recognize the context and adjust your expectations. The goal isn’t to trade every environment at full speed. It’s to protect your capital and confidence so you’re ready when conditions improve.
August requires patience, discipline and a willingness to do less. Adapt to the market in front of you rather than forcing it to provide opportunities that aren’t there.
Stay sharp, stay patient and remember: Sometimes the best trade is no trade at all.
I hope that helps!
Roger Scott
Roger Scott Trading
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