Although the world of Forex trading operates round-the-clock apart from weekends, this does not mean that you should be spending sleepless nights glaring at how the charts move up and down. There are some days of the week that have less activity and you can do yourself a favor by staying out of the market during these times. So which days of the week are the best for trading forex?
Good returns are made from the business of trading currencies when there is high activity in the market. When the market is not making any significant movements, it is a waste of time to try to place trades. Therefore, when the market is full of activity, there are usually plenty of opportunities you can identify to harvest massive profits.
It has been observed that the forex market is full of activity during the middle of the week; that is, on Tuesday, Wednesday, and Thursday. During this time, most activity takes place and you can take advantage of this to make your account overflow with pips. Less activity usually takes place on Mondays because most traders have not opened their positions. Fridays are often full of activity until 12:00 pm EST. After that, the market starts moving at snail space until it closes at 5:00 pm EST. This implies that for a forex trader, weekend always starts early! During the weekends, most brokers usually close their platforms; thus, it is not possible to trade.
The European session that opens at 3:00 am EST is considered to be the busiest of all the other sessions. About thirty percent of all forex transactions take place at this time. Thus, you can maximize your trading performance by trading during this session. Better still, when two sessions are overlapping, the activity in the market often increases. The Asian and European sessions overlap between 2:00 am EST and 4 am EST and the European and the U.S. sessions overlap between 8:00 am EST to 12:00 pm EST.
If you are not able to trade during the times when there is high activity in the market, then you can become a long term trader. Using this method, you can open positions and leave them to run for days, or even weeks. As such, you will not have to wait for the best days of the week to trade Forex.