You can trade on Forex in different time periods, except for those moments when the markets are closed. But choosing the right time to close important deals can sometimes have a big impact on the bottom line. We will talk about when is the best time to start trading in order to minimize the risks of getting into moments of very low liquidity.
Does anything happen on Forex during the holidays and weekends?
Markets are closed on weekends and holidays, and traders mostly take a break from business. However, this does not mean that such days are completely “dead” times when you need to completely withdraw from trading. During the week, transactions are concluded until 01:00 on Saturday or the start of a public holiday. Some brokers still provide the opportunity to trade on weekends, but this is not common, as experienced traders often try to avoid trades on weekends and holidays. Trading after weekends or holidays starts at 01:00 on a new day. However, money does not sleep even when the market is down.
Weekends and holidays are often used by traders as an excellent moment for fundamental or technical analysis of the markets and preparing trades that can be executed immediately after the opening of transactions. A lot on Forex that has just opened after the weekend and holidays may depend on the latest news in the world, which you must also follow and try to use them for trading in the very first hours.
Weekends are used by so many traders to monitor gaps – an important part of developing a trading strategy. Such monitoring involves the observation of price gaps in order to anticipate the appearance of new gaps after the start of trading at 01:00 after a weekend or holiday. Gaps appear constantly, because the indicators at the close on Saturday and open on Monday can differ significantly. If a trader has learned the art of monitoring such gaps on the weekend, then he has an additional opportunity to make very successful deals immediately after the opening of trading. Late in the evening, already a few hours before the Forex opening, changes in prices and gaps that have appeared become visible, which means that this time can be used profitably.
Also, weekends and holidays for many traders are a good time to make money on binary options. The binary options business involves looking for opportunities to make money on trading rates by predicting changes in the value of an asset. Playing on rising and falling values is not a very difficult tactic that even a Forex beginner can master. This type of trading cannot be called the most profitable, but its plus is its simplicity and the fact that it is very convenient for those who want to stay in good shape on weekends and make money on trading even when the market is resting.
Choosing the right day and moment for transactions
In order to find the best moment to trade, you need to regularly study the activity of various trading sessions and understand the corresponding patterns. You need to understand the average ranges of the major currency pairs traded on during different days of the week. It is impossible to trade during all sessions, so you need to develop a strategy for when you should and shouldn’t do business.
As a rule, experts call the safest time in the middle of the week, since there are noticeable movements in prices at this time. At this time, the Forex market becomes as active as possible, and the number of transactions usually grows, and along with this, the chance of success grows.
It is also worth paying attention to various small tricks and practices, confirmed by the experience of many successful traders. Try to trade when major political and economic news emerges that affect volatility and price changes. Always remember when sessions end and begin – look for opportunities to make deals when moving from one session to another. The middle of the European session is also an excellent time to trade, as it is a very active time in Forex.
Along with this, a successful trader needs to develop clear rules for when to trade not to, and adhere to them. You need to be very careful with trading on Fridays, during the time close to the close of the American session – during these hours liquidity decreases. Also, you need to understand what news can make price changes unpredictable – do not trade amid any major news. Also, avoid trading at a time when you might be doing something else at the same time, be it watching a sports event or watching a movie – the deal requires complete concentration.
Particularly popular types of business for traders after hours
When you have formed your own strategy of what days and hours to trade it is worth and not worth it, the question arises not only about alternative ways to make money in Forex using binary options or gaps, but also how else successful traders usually make money in hours free from deals? Some types of business are similar to trading in the skills they require and develop, and therefore are well suited for a trader to combine with the main occupation.
Poker is a very common business for traders. The professional game requires the same intellectual, logical, psychological skills that are critical for traders in making deals. Poker players often become good traders, and traders and vice versa. A very famous example of a professional poker player who came to a new occupation after trading is Evgeny Katchalov. For many years, trading was the main way for him to make money, however, seeing so many similarities between his business and poker, he decided to try playing online first, and then in a casino. Already in the early years, he achieved success, and as a result, his winnings are already in the millions of dollars, and the player himself was even invited to the team of PokerStars professionals… Poker can help a trader not only find a new way to make money but also develop skills that are important for the main occupation, become more self-possessed and confident.
Forex trading skills are highly valued in other similar businesses on various online platforms. Many platforms that organize Forex business also offer their clients to make money on the difference in prices for gold, silver, oil. Finally, parallels can be drawn between trading and the bookmaker business – analytical skills from one business turn out to be very useful in another.