Forex – Best Days of the Week to Trade
After learning all about the different sessions such as Tokyo session, London session and New York session, we therefore conclude that London session is the busiest out of all the other session. However, there are also certain days in the week when all of the markets move slower.
Check the chart below. The chart shows the average pip range for the major currency pairs for each day of the week:
As you can see above, trading during the middle of the wee would be the best time. This is because most actions and movements happen during those times.
On Friday, expect the market to be busy until 12:00 PM EST while it slowly drops dead until it closes at 5:00 EST. This means that we only work half-days on Fridays.
It also means that weekend always starts earlier than usual. Great! Isn’t it?
So, just by looking at the table above, you can easily identify when the busiest time of the market are. Always remember that the busiest times are the best times to trade because they significantly give you a higher opportunity of success.
Managing Your Time Wisely When Trading Forex
If you were a vampire who never sleeps, then you would probably trade on all sessions 24 hours a day 5 days a week. Well, that’s not possible. Even if you could, why would you do it? Forex market is indeed open 24 hours a day, but it doesn’t mean that actions and movements happen all of the time.
Besides, we need to sleep to remain fresh, healthy and alive.! That’s a par to f being a human.
In order for you to become a hotshot trader, you need to have a rest. It is very important to give you the eagerness, power and knowledge about everything else in this world. Of course as a trader, it is your responsibility to know the basics as well as the advance lessons in forex trading.
Each trader should learn and understand when to trade forex.
Also, each trader should learn when not to trade forex too.
If you know, learn and understand when and when not to trade forex, then you can most probably save some money. You can always play Temple Run while waiting for the market to move fast and go busy.
Now, here’s a short summary of the best and worst times and days of the week to trade forex.
Best Times to Trade Forex
1. It is best time to trade when two session are overlapping. These are also the times where major news events come out to potentially spark some volatility and directional movements. Always remember the table above as well as the market hours for trading session to succeed in forex trading.
2. Out of the three session, European session tends to be the busiest.
3. Most movements and actions happen during the middle of the week. During this time, pip range widens for most of the major currency pairs.
Worst Times to Trade Forex
1. Sundays – Everyone is just enjoying their weekend during this time. Some just spend their time sleeping.
2. Fridays – On this day, liquidity dies down during the latter part of the U.S. session.
3. Holidays – of course! People need a break. These times would be the best times to enjoy with the family.
4. Major News Events – I’m pretty sure you don’t want to be a victim.
5. During special events, NBA Finals, American Idol or the Superbowl.
Do you have any hesitations, questions and clarifications? Can’t seem to trade forex during the optimal sessions? Don’t worry much! You can always be a position trader or swing trader. We’ll deal deeper into that later. In the mean time, let’s move on to how you can make a lot of money in Forex trading. I’m pretty sure you’re excited. Well, I think you should!
Proceed to the Next Lesson: How Do You Trade Forex
Go Back to the Previous Lesson: Session Overlap
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