August Trading Data - What Does It Mean For Traders?

Turns out “quiet August” might just be a myth traders keep repeating.

You always hear it:
“Oh, August is a quiet month…”

Because, well… it’s summer, right?

Traders on holiday.
Desks half-staffed.
Kids off school.
Funds cruising.

And yeah, I’ve said it too.
“Watch out for a vol crush in August, Mark… last year was an anomaly…”

But this time, I thought: 🤔

Let’s actually look at the data. (Here I am telling everyone August is quiet, maybe I’ve got some deep-rooted trauma bias from the 2005 range crush, and I’m actually full of sh*t)

AUGUST STATS

I pulled the SPY (S&P 500 ETF) monthly stats, a solid enough benchmark for volume, range, and movement.

Plugged it into my old pal ChatGPT. (So take everything with caution)

Here’s what came back:

📊 33-Year August Stats:

✅ 60% of Augusts closed green
🚀 Best month: +6.4%
😬 Worst month: -14.1%
🧮 Average return: -0.27% (dragged down by a few wild ones)
🔊 Volume: Above average
⚡️ Volatility: In line with most months

Then I asked for the past 10 years, including median range to filter out the 2024 madness:

🔎 Last 10 Years:
📈 Avg return: +0.85%
✅ 7 out of 10 closed green
📦 Median range: 18 points
📦 Average range: 21 points
📉 Worst August: -3.4%
📊 Volume: Still strong

So yeah… turns out “quiet August” is more myth than reality. 😬

The pace might be what I call staccato… quiet lulls, then sharp bursts of volatility.

But actually? The opportunities are still there.

Maybe it’s the price action rhythm that changes.
Or maybe I have been full of 💩, and August’s no different than any other month…

Either way, risk management and picking our spots will keep us in the game. Whatever the market throws at us.