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Worst time to trade Forex

Worst time to trade Forex

Knowing when to trade, and when not to, is critical as a trader. It will help keep your capital safe when conditions are volatile or markets are illiquid and capitalize when the time is right.
Lazy weekends
As for the worst time to trade Forex, the first comes late Sunday and half of Monday. At this period of time, everyone is still slow, sleepy and or re-assessing/forecasting the market direction ahead of the trading week. Nobody trades on weekends, and you should not.
Major new releases
The other worst period for Forex trading includes major news releases, whether it is financial reports, economic data, or political updates. Such major news can have an unexpected and unpredictable effect on the Forex market.
Inadequate price action
There may be some times when a currency pair is trading in a strange price action. This implies that the price is surging or indicating random moves. In this period it can be very hard to understand the cause for such sentiment. It is better to wait out till the bizarre trading finishes.
Fridays
Most of the traders close their Forex positions on Friday. This is done in order to avoid the opening gaps of Monday. The traders prefer not to hold any open positions over the weekend, as the liquidity and market are on the slowdown.
Trading is a mental game. We think that it’s 80% mindset and 20% mechanical. So if you aren’t feeling at the top of your game, take a seat on the sideline. It’s better to miss a setup or two than to risk a costly emotional meltdown.
Just remember to not enter a position immediately before or after high-impact news. And last but not least, make sure your mental game is on point before risking any capital.
December & Summer Holidays
While setting up your own Forex trading plan, it is vital you take the holidays into consideration in order to take the best out of the Forex market. Forex trading markets are not working during Major Christmas, New Year and summer holidays.