Can You Trade Forex on Weekends?
Can you trade forex on weekends?
Everyone has asked this question at some point.
Well, the quick answer is no.
So, when can you trade forex?
And what time frames are the best for trading forex?
Hold on! One question at a time…
Can you trade forex on weekends? When can you trade forex?
Let’s start with the most obvious question…
When can you trade forex?
The weekends are days off for forex traders.
It’s a time to reflect, unwind, and maybe review your trading plan.
But, together with reviewing your trading journal, we suggest you take some time off from the charts…
Who would want to work on the weekends anyway?
The forex market is open 24/5. This means from Monday to Friday. It operates 24 hours per day during this period and is made up of multiple sessions throughout the trading day.
Let us explain…
If you didn’t know, a standard forex trading day is made up of four sessions. These are the Sydney, Tokyo, London and New York sessions.
You can profitably trade any of these sessions, mind you.
Just answer these questions: What times are most convenient for you and how much volatility do you want?
If you don’t know the answers, read on…
Forex trading sessions
The first session to open is Sydney. It starts at 9pm GMT.
The Tokyo session comes next, kicking off at 12am GMT.
The London and New York trading sessions open at 7am GMT and 12pm GMT, respectively.
Now, just so you’re aware, not all trading sessions are the same. That’s why you need to time your trades wisely. Keep in mind, successfully timing your trades is the only way to succeed in this business.
For example, are you looking to trade when it’s the highest volatility?
If so, the best time to trade forex is when the London and New York sessions overlap. That’s because the largest number of traders are trading the forex market at this time, so volume’s peaking.
Why is a 24-hour market good for forex traders?
Keep in mind, trading the forex markets doesn’t need to be a full-time job.
There’s no reason to spend hours staring at your trading screen.
Mind you, we won’t judge if you want to stare at a screen all day. But in forex trading, you can trade around your schedule. For example, whether you want to do a quick scalp during your lunch break or a long sell of AUD/JPY at the start of the Tokyo session, you can.
It’s up to you.
Remember, forex is open around the clock so you can decide how to play the game…
Forex offers you unmatched flexibility.
What other business does that?
That said, while this may seem attractive, what’s the best time frame to trade forex?
Can you trade forex on weekends? The best time frame to trade forex
We know you won’t like the answer.
But it depends…
You need to ask yourself this question: What kind of trader are you?
Do you want maximum volatility? For example, you might be a scalper, range, or swing trader.
Or does your strategy allow you to trade at any time? For example, you might be a momentum or short- to medium-term forex trader.
Be honest with yourself.
Not all market conditions suit every trading style…
If you don’t know what kind of trader you are, don’t stress. We suggest you start by trading a higher time frame and, thereafter, adjusting your style.
Trading higher time frames
Trading higher time frames will give you the best chance at making a profit at the start.
There’s less noise…
Noise, in this case, means trading volatility. More volatility (noise) on the charts makes it more difficult to see reliable patterns. If you start with a higher time frame, the chart looks cleaner and that makes trading decisions easier for you.
We recommend trading the four-hour and daily charts, if you’re new to forex trading. But if you want to trade the one-hour chart, then do it. That said, we don’t suggest trading any lower time frames at the start.
Remember, lower time frame charts have more volatility and that increases complexity.
Trading frequency is also another key factor when selecting a time frame.
You might not trade forex multiple times during the day. If so, you’re probably looking for something you can throw on autopilot and go about your daily business. That’s probably why you’re asking: can you trade forex on weekends?
We hear you…
Time is a premium.
That’s why it’s important to know your trading style.
Are you a position trader, swing trader, day trader, or scalper? Remember, scalpers will look at different time frames to position forex traders.
Understanding multiple time frame analysis
Professional forex traders don’t just look at one time frame and pull the trigger, mind you.
You shouldn’t either.
Trading all the time often gets costly, especially if commissions are involved. That’s why it’s useful to know what the primary trend is.
The simple way to get this answer is to look at a higher time frame chart.
That begs the question: are lower time frame charts useless?
Lower time frames aren’t useless.
Lower time frames are good to see entry and exit points.
Indeed, everything has a purpose when you’re trading forex…
Let’s say you’re trading the daily chart. The best time frame to enter and exit your trades would be either the daily or the four-hour chart.
That might sound odd…
But professional forex traders often see the best forex trades lining up on lower time frames.
You need to have a holistic picture of where the market’s going. That often involves analysing lots of time frames to get different trading perspectives.
Trading the weekend gap
Speaking of trading charts, sometimes they show large gaps around weekends. So, the chart pretty much answers the question: can you trade forex on weekends?
Since the forex market doesn’t trade on the weekends, life still goes on. That means there can be a major news event over the weekend that results in price gaps. Price gaps are when Friday’s closing price is different to Monday’s opening price.
Some professional traders like to go into the weekend with no risk (i.e., positions). But some, such as position traders, ignore weekends unless there’s a newsworthy event that changes their buying decision.
That said, there can be some great trading opportunities come Monday…
If you hear any major news over the weekend, which you think might impact a certain forex pair, you can place a trade during the Tokyo session. Then when the London and New York forex traders wake up, they might be thinking the same thing and join the trade.
But, like anything else in forex trading, this strategy isn’t the holy grail.
If it was, everyone would be rich.
But it might be a way to take high-probability trades and make you money!
Your ‘Start With Forex’ Takeaway: Can you trade forex on weekends?
Today’s question was: can you trade forex on weekends?
You know the answer now.
If you don’t, forex might not be for you!
The forex trading sessions are open 24 hours a day, five days a week. That’s more than enough time to make money. But, as we said, who wants to trade on the weekends anyway?
The best thing about forex is that you can trade at any time!
You’re your own boss, at the end of the day.
Your ‘Start With Forex’ Takeaway: You can trade when you want and as frequently as you want. If you want to be a successful forex trader, ask yourself how much time you can dedicate each day to the screens. Trade the times when you only see the good, clean opportunities.
To your trading success,
Start With Forex
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