Trading forex is different for each individual investor. Some may prefer to trade in the morning, while others choose to trade in the afternoon. And while Americans may want to trade on Mondays, Europeans might prefer to play the markets on Friday. But, there actually is a science that goes into trading forex. Here is a breakdown of the three best days to trade forex:
Midweek is easily the hottest time to trade forex. On Mondays, most investors look for trends without making moves. And by Friday, these same investors are usually content with their transactions earlier in the week. Tuesday is arguably the hottest day to trade forex. On this day of the week, market volatility is nearly 130% of what it was on Monday. As mentioned earlier, investors form their opinions through research. And this research is always performed on Monday. By Tuesday, investors are at their most active point in the week.
By Wednesday, the market slows down slightly, but not by much. This happens simply because Tuesdays are so busy that the markets cannot keep up that break-neck pace. Although business is slower, Wednesday is considered the second-best day to trade in the week. The pip range widens for a lot of the major currency pairs.
Thursday is commonly referred to as “climax day.” The majority of profits can be made on this day. Most forex markets move really well on Thursday, making this an incredible day to trade and accumulate wealth. For high-rolling investors, Thursday is really the best day to turn a profit.
Experts also advise investors to not trade during big international events aka the Super Bowl or another widely viewed television program. Friday is never a good day to trade as most investors are content by that day. And last but not least, do not try to trade during Sundays or holidays in general.