When you think about it, timing is crucial for almost everything in life. Trading on Forex is not an exception. Think about it and travel back in time to the day you made your first trade. You didn’t even think about which day or time it was but you must have noticed the changes in the market, the way it shifts from hour to hour. Maybe you made a profit from your first investment, maybe you didn’t. Both way, you learned that preparation and research is the key. The most successful Forex traders know when to trade Forex and make a profit out of it. You must be thinking to yourself that it is strange to pick certain days to trade since Forex is known as a largest marketplace around, and it is open for business twenty-four hours a day. Of course, nobody is forcing you to trade on certain days only, but you need to know that the market is constantly moving, and in order not to lose your investment quickly, you have to be clever and figure out the best days to trade currencies.
The Middle of the Week
The majority of experienced Forex traders usually recommend that you should aim to trade in the middle of the week. That would be on Tuesdays, Wednesdays, and Thursdays. Those are the busiest days and there are more opportunities for a profit due to volatility of the market during those times. Again, this doesn’t mean you should spend your entire Tuesday or Wednesday trading on the market. First of all, it is bad for your health since you need to sleep and rest in order to be more alert and focused. Secondly, even though the market is shifting and changing and presenting you the chances for profit, it is not going to occur for the entire day.
Aiming for the overlap
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You are probably already aware of the major trading centers and the fact that they are scattered around in different time zones. Surely, it is up to you to decide when to trade Forex, but the general assumption (and advice by the experienced Forex traders) is to aim for trading when two sessions are overlapping. You have to know the exact timing when that happens in the time zone you live in and try to trade right then. It is not as complicated as it sounds – you simply have to organize yourself and your available trading time properly. Make a separate trading calendar and mark the top days to trade Forex alongside the time schedule and the sessions you plan on trading in for that day.
It is hard to pinpoint a single day when the market presents the most opportunities for Forex traders. As I have mentioned before, the best days of the week to trade Forex are Tuesday, Wednesday, and Thursday. They are the most eventful days when it comes to the volume of the market and the pip ranges.
Being media savvy
Following the current events in the media is also very helpful (and sometimes crucial for the overall success). The major news can create the movement on the market even on the days which are not usually regarded as the best days to trade Forex. Any sort of turmoil in the world of economy, or in global and political world can make the market shift and give you the more possibilities for the eventual profit.
The Not-So-Great Days for Trading
Clearly, there are some days which should be avoided when it comes to trading on Forex. They are slow, uneventful, and unlikely to bring you any sort of profit. If you put on your thinking cap, you will instantly know which the worst days to trade Forex are. Be mindful of these days and approach them carefully:
- Fridays: The Friday mornings are still fairly eventful, but as the time go by, the situation on the market starts to wind down quite a bit. There is a huge possibility that the volume will decrease, and that the trends will reverse which may eventually lead to a loss. You should be extremely cautious if you decide to trade in the Friday afternoons, depending on the time zone you live in.
- Mondays: They mark the beginning of a week and in comparison with the next three days which are the ideal time for trading, Mondays are not extremely profitable. They might not be the best days to trade currencies. The market is still forming and the traders are waiting for the economic numbers to reach the public. You can still begin trading on Mondays if you want to be consistent and accountable but be careful. Do not make any risky or unnecessary trades in the beginning of the week.
- Other days: Always keep in mind that the holidays are also bad for your Forex trading. Especially the big ones. The large firms and money traders are on leave so the possibility that the market will move significantly is very low. The major global events can also have a negative impact on your profit if you are an inexperienced trader. If you are unsure what to do, simply avoid trading during that period in order to save yourself from the possible loss. A successful trader knows when to trade Forex and when to stay away.
To summarize, using your logic and creating a solid trading strategy which includes the proper times for trading is crucial if you want to make a profit. Trading on Forex market can be complicated and you need to do your research. It is hard to choose only one day which can be regarded as the best day to trade Forex, but having the knowledge on how the market works can put you in advantage. It is safe to say that trading during the middle of the week is the safest way to go. The majority of opportunities for profit are created during those days and clever traders know how to use them. Being aware of the days when the market is slowing down is important as well. No one likes the unpleasant surprises, so trade smartly at all times.