Hi all. Mike here.
I just wanted to share something that hit me this weekend.
I have realized that my mind is always mauling over things about the forex market. And my business to it also.
I’ve always heard that you shouldn’t trade on Monday’s. I have heard a lot of folks that don’t. But, I never heard of the reason. I never took much thought to NOT trading on Monday’s. Why not? There’s opportunity out there.
Well, it hit me pretty hard. And now I’m not going to. The reason, for me, is this…It makes so much sense to watch what the Asian’s do, after the weekend, then what London does, after them, then what the US will do, if they follow suit. Then comes Tues. I watch what happened during the Asian session, and that’s when I’m awake, come London. I can take opportunities from there on.
I think it also exhibits the old adage “be patient!” also.
And to be honest with you…also, the last 2 weeks I have been on the losing side of things starting on Sun evening, when the market opens, up to Wed. I have noticed that things really seem to turn around come Tues.
Luckily I have been able to find the pips back that I have lost, in the last 2 weeks, at the end of the week. (I have a weekly goal)
So, I think if I just wait and see the progression of things, see who’s dominating, also who’s a real loser in the week, I should be better off. Hopefully.
Anyone else agree?
Or not?
Perhaps interestingly the week closes in the same direction of the Monday close about 60% of the time… I can see someone getting whipsawed out of it, or perhaps it’s simply the incorrect direction, but in terms of pure direction I don’t see anything wrong with it. Although Monday’s do exhibit the smallest average range by about 10-20 pips compared to the rest of the days
I never heard not to trade Monday but if you saying than it might possible that as market is closed on Saturday and Sunday so may be for this reason people skip trading on Monday.
Hi epic…
I have read a lot and there are definitely traders who think that. Anyway, I still adopt that reasoning mostly due to the fact that the flow of trading usually picks up slowly after the break of the weekend. It seems easier to see what’s the flow after the first asian, london, us sessions on mondays. But, that’s with my type of trading, fundamental first then with technical analysis to follow, and confirm.
I think it’s a psychological thing. Plus, I think that traders do some analyzing on the weekends. And digest important data.
Oh, and personally, I have been burnt many times in the beginning of the week way more than towards the end of the week.
It just makes sense to me, that’s all. No real big deal.
I think about it a bit other. I think you can trade on Monday but the liquidity is maybe not as much. The main trading days are Tuesday, Wednesday, Thursday and early Friday.
An advantage of trading on Monday is definitely that you can get ready to it on the weekend and make your analysis in silence. You can just prepair yourself and make your trade. It is more difficult on the weekend to make an analysis what you want to entry on Wednesday or Thursday. It is a lot harder to predict where the market is going to be in 3-4 days.
I myself don’t trade much on Mondays (unless there’s a really good tradeable news event) because I use that time mostly to review the events in the past week, catch up to what happened over the weekend, and get an overview of what’s scheduled for the next few days. I generally like to trade mid-week and just base my risk sentiment analysis on how pairs behaved on Monday. Nothing against trading on Mondays really, just a habit I developed.