Best time to trade forex.
In my previous articles I have discussed various reasons why the best time to trade forex is during the weekdays. In this one I will talk about why it is a good idea to trade forex in the weekends as well. The reason I am suggesting this is because during the week, the biggest markets are open. This leaves very little room for trading with leverage and spreads.
During the weekdays, it is not uncommon to make only small trades. You might only make a hundred dollars on each trade. If that were the case you would probably be better off sticking with longer term investments like bonds and mutual funds. But since most traders are looking to make more money than they are spending, they seek to exploit short term trends to maximize their profits.
There are several ways to determine the best time to trade forex. Probably the most reliable method is by using an electronic forex platform. These have advanced features that allow you to enter and exit trades instantly. Also your trades are automatically finalized within a matter of seconds.
Another way to determine the best time to trade is by utilizing technical analysis. This involves the use of moving averages, retracements, trend lines, envelope patterns and other indicators. This allows you to predict exactly where the market will go before it happens. Some traders like to combine these signals with other indicators to get even more accurate results.
The main reason to trade forex on the weekend is because you have less competition. When the markets are open all you have to do is enter and exit in a few minutes. Then, when the markets close you have just made all your money. However, if you are trying to make money over the weekend it is likely that you will miss lots of trades and make very little. Since there are so many people trading the markets, this makes it a little harder to be profitable.
If you are planning to trade forex on the weekend then the best time to trade is Friday afternoon. This is usually the largest time for the majority of traders. It is normal to feel uneasy about making this trade, however, as long as you have done your research and understand it can be quite profitable. When you make this trade you will generally wait until the morning, but some traders like to trade forex during the lunch hour and return to the same positions by the end of the day.
It is normal to lose money when you make trades on the weekend, but this is one of the few times where you can actually make a lot of money. This is because the forex markets do not open on Saturday so this gives you an advantage. Plus, if you are using technical analysis you will know exactly when the markets will open and close so you know exactly when to make your trades so you can make more money.
There are so many different times that you can decide to trade forex, however, if you are planning to trade forex on the weekend, then the Friday afternoon is the best time to do so. It can be nerve wracking to place these trades but if you use technical analysis, back test, and other tools you will find this profitable. Just remember that when you are looking for the perfect time to make your trades you need to be relaxed. Also, be sure you research the markets so you know how to interpret the data and make good decisions.