Mistake number 5: neglecting TIMING.
Some times are better for trading than others depending on your strategy.
Certain times can be especially challenging to make money in the forex market.
These times include the days before, during and after a major international holiday, such as Christmas or New Year’s.
Major bank holidays in the United States, the UK or Europe can also adversely affect trading volumes, often leading to sharp moves in thin markets that can trigger stop-loss orders.
For most traders, the following are among the worst:
The Witching Hour. The loneliest and scariest time in the forex market is when the sun is just rising in Tokyo and traders in Sydney are drinking their first cup of coffee. The time between the New York close and the start of trading in Tokyo has always been a time when investors avoid trading if possible. During these two hours, forex trading volumes can decrease to just 2% of peak turnover. Thus, liquidity is super low. Consequently, the spreads get very high and any transaction completed during that period can influence the market disproportionately. It is during this time that many stop-losses get triggered and flash crashes happen more frequently.
Sunday Afternoon Opening. The market opening on Sunday often carries an element of surprise, especially if a major geopolitical event happened over the weekend. Forex currency pairs tend to gap up or down during the start of the Sydney session. Also, dealing spreads are typically so wide that you would usually be wise to wait at least until the Tokyo opening to get a better idea of what the market is like.
Wednesday Rollover. In the middle of the week, there is a tricky rollover commission that surprises many novice traders. What is a rollover? If you hold a position open on a weekday night, normally your broker charges or adds an interest rate to your account. This interest is called a “Rollover”.
This excerpt was taken from this article.
Happy trading 