Every professional trader knows what are the best days of the week to trade forex. If you want to be a smart trader then knowing this crucial fact is necessary for you. Sunday, Friday, and holidays are the days when you should not trade. When everyone is sleeping or on vacation, then movement remains little. Liquidity dies these days. Successful traders always aim to make some profit rapidly. So, you should always pick the busiest time of day and busiest day of the week as then movement remains high. The market remains volatile on Tuesday, Wednesday& Thursday, as all 3 are the busiest days. So these three days are the best days of the week to trade forex.
We all know that the London session is the busiest session among Sydney, Tokyo, new york session.so if you trade middle of the week during the London session, the chance is higher that you will make a profit. From Tuesday to Thursday, these three days the market remains volatile. These 3 days, markets tend to show more movement. Most of the actions happen in these 3 days, so it’s best to trade during the middle of the week. Now you know what are the best days of the week to trade forex.
Below I am attaching a chart of the average pips movement of some major pairs.
Now you can see from the chart above that the middle of the week is the time period where trading opportunities lie. If you always trade and have to trade all day long and the whole week, how could you manage good health? Also, how could you spare time with your friends and family members?
Rather just come to trade when the market hours remain busy when big boys try to make money. Place trade on Tuesday, Wednesday, Thursday London us overlap session and rest of the week.
What are the best days of the week to trade forex
That means from Friday to Monday, 4 days is your rest time.
Do you find any other profession like this? Do any other professions give you as much time as forex offers to take a rest to hang out to chill with friends? The answer is no. That’s why forex is such a lucrative profession all over the world.
Remember, positions are 3 types.
No position. This “no” position is the most important. Knowing when not to trade is more important than knowing when to trade.
If you research the history of successful forex traders, you will find that most are swing traders or position traders. These swing traders wait the whole week to take the best trades. They don’t trade all day long or every day. Rather they sort out profitable trades from bad ones and stick with it. Only a handful of trades make them millionaires or even billionaires.
Best Times to trade
You already know what are the best days of the week to trade forex. Now I will reveal the best times to trade. I discussed above that the busiest hours are the best hours for us to trade. So As we find out we will only place trades on Tuesday, Wednesday and Thursday, we will place overlapping sessions on these three days. Like London-New york overlap would be our best choice to place trades. Position traders can place trades even at Asian- European overlap trading sessions but for scalpers and swing traders Tuesday, Wednesday, Thursday London-New York overlap would be best.
Worst Times to trade
Although we will try to stay away from the market in late Sunday, Monday, Friday but I have made a list of which days we will try to stay away from the market
- Late Sunday
- Early Monday
- When we will observe strange price movements in the market
- When major economic news releases
- National holidays when there is no major news events.
Best months to trade forex
Best time of the month to trade forex
Currency markets sometimes behave strangely at the beginning of the month and at the last of the month. So trading condition does not remain the same for the whole month. That’s why should not trade the same way whole month. Trade from 5th date to 25th date of the months mentioned above.
Popular forex currency pairs to trade
Although we can place a trade in most volatile and 28 pairs. But for keeping us focused and making top-notch analysis we will pick only a few from these 28 parts list. these are the most popular in the financial market.
What are the major forex centers
Forex market is a 24 hour “Over The Counter” market. Which means there is no centralized exchange house. Although some centers become the major in this field. Like New York, London, Tokyo, Sydney are the major forex centers in the world.
Trading forex during the tokyo session
Yen pairs like AUD/JPY, NZD/JPY, USD/JPY, EUR/JPY get volatile during this period. If you are an Asian session experienced trader and wish to trade during this session then stick to these handful amounts of pairs. Don’t try to trade GBP/CAD, EUR/GBP, GBP/USD, or any other cross pairs during this session. The volatility during this period gets low. That’s why trading during this session is very difficult. And if you are a day trader or scalper then trading during this period is like a hand covering your hard-earned money to brokers.
Trading the forex during the london session
Many European central banks and England’s central bank, the Bank of England announce rate decisions this time. Traders observe liquidity this session. Major pairs such as EUR/USD, GBP/USD, EUR/GBP are the most popular pairs during this session. During this session, we get two overlap sessions. one is the Tokyo-London overlap and the other is the London-New York overlap. Although Tokyo -London overlap is not as busy as the London-New York overlap. If you are a European sessions trader or London-based trader then stay away from trading activity during the first overlap. Instead, try to trade on London – New York overlap. Besides the popular majors, I mentioned above some professional traders try to trade some minor pairs like EUR/CAD, GBP/AUD, and some more. which is not bad. But if you are a novice then stick to only majors. Don’t pick any minor or cross pairs. Because of exotic pairs, cross pairs are not recommended for novice traders.
Trading during the New York session
This session possesses the largest and biggest overlap which is London – new york overlap. Most of the US traders and big banks, financial institutions choose this session. Many USD cross pair experienced their highest trading volumes during this time. among all forex transactions, USD made up more than 47%. So the New York session is the most important session for various reasons. Most of the fundamental News and rate decisions of the US dollar come out this time. Big news events like Non-Farm payroll is announced during this session.
Are certain Times of a trading day better for trends or ranges
Yes, there are certain times when the market tends to trend and certain times when the market tends to range. Like in the early morning in the Asian session market gets choppy. During this time volatility gets dry. But at London- New york overlap time market gets volatile. Most of the trend begins at this time. sometimes the Newyork market just follows the footprints of the London session trends.
Why it is important to Stick with a strategy
After knowing what are the best days of the week to trade forex you need to find out a perfect strategy. Because a successful strategy is a must if you want to become a pro trader. Some like long-term position trading strategies and some choose short-term trading strategies. Without any rock-solid strategy, you cant go further in this highly competitive market. Again there are many types of trading like scalping, day trading, and position trading. so according to your trading styles, you need to fix trading strategies best suits you.
If you also want to get rich by trading forex, you need to be super choosy picking trades. That’s why knowing what are the best days of the week to trade forex is important. Trade only in the busiest time. trade middle of the week 3 days a week and only in London US overlap sessions.
Professional trader’s opinion about best days of the week to trade forex
” The most volatile days of the week to trade is Tuesday, Wednesday, and Thursday “Rayner Teo
“Looking at the worst time to trade forex, there is nothing more slumber-inducing than the late Sunday/early Monday crossover”Graeme Watkins
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