I've heard many people say they cannot trade this market and are constantly getting killed because of the weak volume. Well then, you are doing the wrong things. I've had a ton of success trading this market, putting in streaks of 1K + days. First off, you need to understand that we are currently in a Range Bound market between 113 and 104 in the SPYs. Within that range, we are developing smaller ranges. You cannot take one side. This is not a trending market.

To overcome the low volume of August, you need to be very select with your stocks. Being in something with low volume will get you killed. I've seen so many stocks just drop out 30 cents with no bids. If you were long a stock that did this, how the hell do you define your risk. You can't. Therefore, I have only been trading stocks that have above average volume in them like $DGIT $RIMM $JCG and $GENZ, all of which have had significant news in them. I've made a killing on these stocks because I was easily able to define my entry and exit points. Not to mention, they all made significant moves. I've been able to locate held bids and offers, that were so easy to trade off of. The Tape (inside market / level 2) was basically telling me buy the damn stock or short the sucker. This strategy is working quite well for me so I will keep to it. As long as the market is within the Range of 113 to 104, I will solely stick to my stock picking.