KNOW THE BEST DAYS TO TRADE FOREX
Today’s post is focused on identifying the best days to trade Forex. There are different methods that traders use to trade in the Forex market. Whichever method that you use, there are things that you need to pay attention to, we are trading the same markets irrespective of the strategies used. One thing that traders need to acknowledge is that the banks are the major players in the markets, as they facilitate the majority of foreign exchange volume. Let’s start by looking at the worst days to trade Forex.
WORST DAYS TO TRADE FOREX
1. Bank holidays
As mentioned above, banks are the key players in Forex markets and whenever they are not participating in the market due to bank holiday, the market becomes less liquid and sometimes it becomes abnormally volatile. Most Forex brokers remain open even on bank holidays except on Christmas and new year’s day. It is highly important to know when are the bank holidays so that you can stay away from the currencies involved. In just few days Australian bank will be having their bank holiday on the 25th, they’ll be observing Australia day.
Forex market kicks of on Sunday at 5pm NY time (11pm South African Standard Time) with Sydney session followed by Asian session which kicks off 2 hour later, learn more about Forex market hours/sessions HERE, but during that time most traders are not really participating which explains the low liquidity. Monday morning is usually very quite even during the most traded session, the liquidity is still very low and market is sleepy because most traders are still hung over the weekend and everyone is preparing for their week. I am also not a big fan of trading on Mondays (well , mostly) unless there is some economic event which might move the market, or after a significant economic event from previous Friday, then I would trade on a Monday, and it mostly happens shortly after London/European session opens, at some point I declared Mondays as my day off the markets, since we all need to rest, when choosing a resting day, Monday is just perfect.
3. Friday afternoon
Fridays afternoon are more like Mondays, the market’s volatility dies down towards London session closing simply because most traders are already on their weekend mode and the participation or activity is less which then leads to less liquidity, I have also observed that over the past few years of trading and on Fridays, I try to be out of the market by that time as most traders are also trying to avoid carrying their positions over the weekend, so try to to be out of the markets by the time the London session closes, Fridays are not bad at all, afternoons are less liquid though.
BEST DAYS TO TRADE FOREX
I always noticed that the middle of the week seems perfect for trading even though I didn’t know the main reasons behind it. When I started to pay more attention to the daily speeches I got an answer, the news start to flow in the middle of the week mostly and that is when I also find more trading opportunities.
The above mentioned few points are some of the things that most traders overlook, the first thing that they find faulty when they fail is their current strategy, that is why most traders switch from one strategy to another, what if you are simply trading on the wrong day? I hope you find this post helpful, please kindly share it using the share buttons below. Thank you for stopping by, this blog is nothing without you, I am encouraged to write more because I know someone will read and somehow improve their own trading.