Normally, the forex market is closed on Friday. The reason behind this is that usually, Friday is the last working day of the week the forex traders don’t take Friday worthy for their trades. Throughout the week, traders kept their positions already. Generally, newcomer traders make a mistake; they think weekly trading does not change their trading strategy. But they know that market situations differ each day of the week. If there is any situation where you think Friday is good for trading, double-check that all the criteria related to your standard method are completed. In this article, we will guide you to avoid trading on Friday.
2 Major reasons to avoid trading on Friday.
Especially on Friday, trading volume is low because, according to the Asian market, the starting of the day is the closing time of their market. There are so many risk chances to maintain it on the last of the week but few chances to win your trade. On Friday, traders think you are on the unsecured side of the market traders.
- Fast response on the weekend
Suppose any political news breaks, and you risk opening on a Friday evening when the price will go against your trade. In that case, you will face a very bad financial and emotional situation. You are not able to react on the weekend time.
Why is it Unsafe to forex trade on Fridays?
Common people think Friday is an ideal day for trading, but it is risky for new and experienced traders. Although you cannot find any good day for trading, the facts tell that Friday is a very dangerous day to trade because there is a high chance of loss.
Two main reasons make Friday unsafe for trading.
Opening your trade on Friday is not safe because the gap makes you doubtful; it may be the wrong or right time to trade for you. Many time condition change within a short period. At that time, the opening price (Monday) gets more dangerous than the closing price (Friday). This is the actual time to see a gap emerging in a forex chart.
- Interest rate
Firstly, you should know what is paying and receiving conditions of markup are. Because when you keep your small trades to the next day, they get permitted for high interests, and in this situation, you will have to pay more interest. This condition is applicable only when you keep your trades open full day.
Best days of the week for trading
The forex market situation is becoming unpredictable day by day. The conditions on each day of the week are different. New traders should know which days of the week are good for forex trading. There are 3 best days of trading. They have the best price movement and a perfect trading volume.
According to many expert traders, these three days are considered to be perfect trading days. Monday is also not the best day for trade because after the weekend, Monday is the first day of the working day, and the market is still sleepy or trying to wake up, and its price movement is also slow.
It is not important to trade all five days of the week to make money through forex trading. You put all your effort into these three days to make more profit by trading. If you are looking for more, find out the best trading way because all days have different market conditions. Forex market is a 24 hours open market, you can make money anytime, but good days matter, assuming the best result.
At the end of this article, it is clear that traders should carefully choose the day of trading. According to experienced traders, Friday is the STOP LOSS HUNTING DAY of the week. The price goes down, and the market becomes less volatile. Friday is a very emotional day for beginners because they cannot judge the market conditions.
On the other side, experienced traders keep away their entries on Friday because most of the traders turn up their opened weekly positions. Lack of knowledge most new traders like to exit on Friday; they don’t know about entrance and exit. The conclusion is that you should not trade forex on Friday.