What Are The Best Days For Forex Trading And Why?

Trading time, the market is open for five days throughout the week.

By Guy Avtalyon

The best days for trading Forex… I’ll stop here and give to you some explanation. Most forex traders are more successful during the late US, Asian, or early European trading sessions – essentially 2 PM to 6 AM Eastern Time (New York), which is 7 PM to 11 AM UK time.

If you are a newcomer you would like to trade every second of every day. We know all about that. Our case: We figured the more active we were, the more money we would ultimately make. It so-called addiction to trading! (more about this kind of addiction you can find HERE)  Frankly, we all are probably yet, but we know how to handle it. We hope.

But after many years we figured that making money in this business isn’t about quantity, it’s about quality. So, you must find the best days for trading Forex.

Well, you decided to become involved in Forex trading.

Good!

But you must have taken to attention the fact that market volatility does not remain constant during the day. Proper timing may be the crucial aspect of successful short-term trading.

You have to be sure when are you going to trade.  When is the best trading time? Because engaging the marketplace during periods of maximum participation increases the efficiency of trade execution. As well as the probability of recognizing the opportunity. 

The market is open for five days throughout the week.  But volatility is subject to change during any given time span: a month, a week, or a day.  If you are aware of patterns, according to which this volatility changes, you can modulate your trading strategy. And you’ll be able to take the maximum profits from trading are gained.

OFC, if you know which trading time is producing favorable setups, you’ll know whether to stay on the sideline or begin searching for new opportunities.

That’s the goal!

If you trade the 5 or 15-minute charts, it is important to have many varied parts of sessions throughout the day. But if you want the switch to a higher time frame such as daily time frames, these sessions become less important.

But instead of concerning intraday sessions, let be more focused on the day of the week because the Forex market never closes, and the currency pair can open on Monday at a different price from where it closed on Friday. It is called the weekend gap. If you aren’t cautious, you can get grasped on the wrong side and not even your stop loss will save you.

But let’s go to the object of this post, what is the best trading time.

The most quality setups realize between Tuesday and Thursday. The middle of the week is the “sweet spot” for finding profitable ideas because this is the time when most action happens.

Why the best days for trading Forex is the middle of the week?

On Tuesday, volatility is 20 to 30% higher than on Monday. But it is followed by Wednesday’s moderate decrease, which occurs due to swaps. This can be described as an exchange of assets between traders. What happens at a certain predefined trading time.

During the swaps, traders who keep holding their positions agree to exchange their investments or financial instruments at a preset price. Sometimes, a triple swap is collected, as Wednesday evolves into Thursday, and traders keep their day’s positions open. Traders are getting back to work on Monday, after the weekend, so things move a bit slower. When the market opens on Monday, there’s a high level of uncertainty about what direction each pair will go on that week.

For this reason, try not to trade on Mondays. The only exception is if there is a highly favorable opportunity that you just can’t let pass up. Fridays are when traders begin to pack up for the weekend, they exit positions in preparation for their two days of rest.

The best days for trading Forex: Mondays and Fridays aren’t a time to relax.

It is the best time to analyze the market, update the watch list, and make yourselves ready for new opportunities.
Positions last from a few days to a few weeks, but they almost always include at least one weekend in the process. And it can cause a dilemma for most traders.

You must hear many tips on how you have to avoid holding positions over weekends due to gaps that can form on Monday. But if you place a trade on Wednesday or Thursday, that’s difficult.

What are the best days for trading Forex?

You can do two things to protect your capital when heading during a weekend.

The first is to make yourselves aware of any events on the calendar. If you have Euro exposure on Friday and you see, for instance, it will be some referendum in Spain or elections in Italy over the weekend. It’s probably a good idea to exit the position. You have to be aware of when certain events are taking place. Even political.

The second thing you have to do is to make a decision based on where the trade is in its lifecycle. Is it trading near your entry or are you up 150 pips by Friday’s close?

What is smart to do?

In the first example, you have a 100 pip buffer between current prices and your entry. Sticking with the position could be the right move.

In the second example, you don’t have a buffer. If the pair opens next week near Friday’s close, chances are you’ll be able to secure the same entry

Optimal time in which to enter or exit a given market is the exercise for traders. For some traders periods of enhanced liquidity and volatility may be desirable, others may see plenty of risks.

Individual capital resources, risk tolerance, and style of trading must be taken into consideration when deciding on the best time of day or week to trade