The boom period from January to May provides the five best months of great opportunities ahead. The summer is a snoozing phase, from June to August, the worst time for trading.
In short, the whole year is divided into three trading phases. The boom period from January to May is the best trading time. Snoozing phase, June to August are the 3 worst months for trading.
Which Month Is Good for Trading Forex
There are five good months for forex trading. For instance, January, February, March, April, and May. Whereas autumn months (September to December) offer the best days of the year for trading forex.
The Worst Month for Trading Forex
The summer months are the slump months for traders. You should trade cautiously or stay away during these months. The worst months for trading are June, July, and especially August. Trading is extremely slow in these months.
Best time to trade forex?
The best time for forex trading starts from Tuesday and lasts till Friday morning. The best trading hours are those when there is the heaviest trading volume and excellent trading opportunities. In this regard, 8 a.m. to noon EST, US/London market overlap is the best time to trade.
When should you not trade forex?
Monday morning and Friday afternoon are not good for trading. You should also stay away from trading after a global holiday, political event, and during news of high impact. Moreover, don’t over-trade especially when you are losing constantly. You should not trade when the market is too high or too low or unless you fully comprehend the risk of loss.
What secrets? Read his response again, it had nothing to do with secrets; if that were the case, he could have said it himself, trading has its good and bad times, days and months, that’s no secret , and that’s the same for any financial market. No one’s asking when does he trades or what time he trades.
The rest of what you say is pure nonsense, There is no point in talking about anything else, Read the title of the thread
EDIT: Considering volatility and trade volume, if you and he believe it’s all the same, maybe you should both attend a course together.
This is being turned into something else, Red below, your buddy can’t understand this concept and should be refunded from his professional course.
There are differences in market performance between days, months, and times of the year. Understanding this can improve one’s trading strategy
There are more trading opportunities when volatility and trade volume are up and less trading opportunities when they are down. If you position yourself on days, months and times when volatility and trade volume are up, you will have more trading opportunities. However, it does not mean you cannot make money when volatility and trade volume are down; the market becomes slower when they are down.
While watching the market you should be able to tell the differences, but knowing when they are up and down can benefit one’s trading, where talking about general market behavior that does not account for major news events.
Yes yes yes, whatever you have mentioned are all correct. Now that you are happy, take a seat and try to comprehend what I’m saying.
I’m saying, it doesn’t matter at all that all these exists. If you’re a full-time trader, you need to be profitable every month. And that means you have to perform, regardless of the market conditions.
Let me draw you an analogy. Athletes have to play regardless of whichever stadiums/fields/courts/arenas.
There is nothing to get, what I said are facts, also you can trade in any market condition if you have a winning system but that doesn’t negate the facts I mentioned above.
Bucko, I’ve done this 19 years, I’m good on my end.
This is hillarious, thanks guys! It’s like a scene from whatever movie/joke when people are discussing to different topics and not realizing it. @SmallPaul realized and is of course right based on what his message was to begin with. And then people join in with good arguments, to another discussion, and it gets entertaining.
Now, I get the down months during summer, but why is fall not good? Did not read the link provided, but from the top of my head, I cant see why Sep to Dec should be less good (you do mention good days though).
My background is in the equities market, but I also have some experience from commoddities. It used to be that summer was good for oil, as Americans would load up their cars and drive to their vacation spots. Increased demand for petrol meant increased demand for oil. Also, wedding season in India was a boost to gold, as it is (was?) customary to buy lots of gold to the bride. I cant see the similarity in FX, because it is so massive, and currency is needed all year? PS. Sorry for the long post…
All financial markets have slow and very active months, days and timeframes for various reasons, some of which are based on supply and demand. knowing when the markets are most active can benefit one’s trading.
I would argue all markets are based on supply and demand, that is what drives prices. Including FX. The months you mention lead up to Xmas, and with the levels of online ordering we are now seeing all over the world should increase dmand for currency exchange.
The text in italics is what I was planning to write. Then I remembered that retail demand has nothing to do with the demand of currency in total. So my question remains unanswered. Why the drop in volume/demand in Sep to Dec? And, likewise, why the increase in demand Jan to May?
Well, to answer my question then, after reading the article: "The best months for forex start from September to 20th December. In these four months, a huge and sudden trading activity begins after the summer holidays".
So it is standard trading rules:
January is a new year, new opportunites, new deals to be made. Any sad experiences from last year are gone. High volume. This goes on to May
June - August. Summer
Late August. Summers gone, lets get back into it. High volume
Christmas. Starts early, so mid December and to year end is slow.
Then we start again.
Various factors contribute to volatility and trade volume fluctuations during different timeframes, days, and months.
The majority of my trading opportunities come when the markets are more active, based on my trading log. Nevertheless, I continue to trade when volatility and trade volume are low, regardless of the of days or months, because there is always money to be made whether the volatility and trade volume are high or low.
You should always be cautious of overtrading, sometimes it’s better to sit out than to trade just for the sake of trading, that should also be part of your trading plan.
Yes, like @theforextruth (suspended) said. We trade through the rough times. But that was not the topic of this post. Yes, there are ups and downs in the FX market, with regards to volume. One issue with low volume is that spreads increase. Hence, trade in the months outside of May-August.
Read his response again, it had nothing to do with secrets; if that were the case, he could have said it himself, trading has its good and bad times, days and months, that’s no secret