My mentor has advised me based on his practices. When the market opens on Sunday, he refrains from opening any positions due to spread and higher probability of stop hunting. He basically trades tuesday starting in the london session up until thursday NY session except for when he scalps if there is news on friday
wha are your opinions on this approach
I don’t usually start trading until Monday morning, it seems to take a few hours to build some momentum (liquidity) and establish a directional bias. Also, I won’t open or close any trades for at least an hour after the NY session ends, so between 5-6 pm NY time, due to the spreads.
2 Likes
Sometimes market determines weekly direction in the first hour or hours of trading. I like to trade during opening despite of high spreads because this time contains a lot of trading opportunities. A lot of incoming info (from weekend) should be priced in and this leads to wild price moves.
Sometimes it can work out in that way, but sometimes it can lead to wild price moves. Just have a look at previous chart and then grab that opportunity.
I find spreads and volatility so large during the first Asian session of the week that I never set entry orders over the weekend. My entry orders are usually at confirmation points but the market session prior to London’s Monday opening is a poor indicator of any subsequent price action.
It surprises me your mentor referred to “stop hunting”. There isn’t such thing… no one is looking at your charts trying to hunt your stops…
My opinion is for you to try different things as quickly as possible, then decide what works for you and what doesn’t.
Regards!
In fact, your mentor has quite an interesting approach to trading time. It seems to me that this is one of the safest systems with minimal risk I ever saw. Even so, I would advise you to check your trading analytics every day, as some news may come out earlier and some later, they don’t always have an accurate chart.
1 Like
I think that is what everyone else also does. They wait until Monday morning.
I don’t usually trade on Mondays. I try to trade when the Sydney session ends on Tuesday. And I do a lot of analysis before trading each.
1 Like
he is right.
except for dollar pairs where you can have decent trade opening within first hours of the market
That is actually fine, Even many traders do that, especially in the first few hours of market where the chances of making profit are higher in that case.
There is not necessarily a “best” time to trade on Forex.
When certain countries open for business, the currency of that country and the currency of their trading partners are likely to have an increased volume of trade.
Thus, no matter what session is open, the trading countries at that moment directly correlate with the currency they are trading. This means that each trading session will differ slightly in terms of the activity of certain currency pairs, market volume and volatility.
It is also worth remembering that at certain times of the day, news and reports are issued that affect the Forex market. At these times, the impact can be very strong, causing a quick price maneuver in one direction and an equally quick return to the original price.