Today I wanted to trade like on the previous day on GBPUSD but after reading Babypips news I realised there were higher risks due important news planned during today’s morning until around 1PM (knowing the market close on Friday at 4pm…so less probable target profit for higher risk…) : as a result I didn’t trade taking into consideration the above and the time to acknoledge the news.
However, I would like to know if usually it is a better practice to avoid trading the news especially on Fridays.
IMO, and it’s debatable, only significant news affecting the economy, major political changes, or Covid 19, would for a short time be an aspect to consider.
As for Fridays, it’s my most profitable day of the week over the last 8 months being an intraday trend trader. In my view it’s human nature for the big institutional traders NOT to rock the boat or take risky positions going into a weekend, because nobody wants to be fearing an unsuccessful outcome come Monday morning. Humans, even traders, want their weekends to be enjoyable.
@steve369
“nobody wants to be fearing an unsuccessful outcome come Monday morning. Humans, even traders, want their weekends to be enjoyable.”
I had the same feeling, but my decision was equally motivated by the fact I didn’t know where to quickly cross check the news in regards to the Economic Calendar. Hopefully from next week I could equally trade on Fridays (during mainly the London session).
Wow this is interesting. I suppose it works for you because you trade intraday. When I enter on Fridays I just find it so stressful having open trades going into the weekend. It’s either I’m stressed or I completely forget i even have trades on lol.
Well, if it causes you stress, don’t trade until you are able to trust your strategy to deliver. IMO, even if a trade loses, WHICH IS INEVITABLE, if it was a good trade that met all your conditions, you should pat yourself on the back and go out and celebrate life.
There’s always another trade waiting. Treat it exactly the same.
@frodo23 Everytime I ask my broker the cost for keeping a position open over the weekend he just provide me a strange formula…so I prefer to avoid (further) surprises.
I should have listen to my instinct : not to trade the friday of the week I created this thread…despite of the fact my losses were not due to the market nor to news…but instead a sabotage/data manipulation.
I do think that there are no better ways than news in case we speak of fundamental analysis for medium/long-time trading, you know. Of course, on fridays the market is closed earlier and the news which is released also on fridays can influence currencies rates/assets price. From one side, intraday traders state that fridays are the most profitable days in the whole week because risks are higher hence the chance of winning is higher too. From the other side, some traders stay away from trading on friday because of the same situation, they’re afraid of losing their deposits because of news, you know. So, I guess you’d better tradon fridays.
I don’t think that trading on news especially on fridays can be a good idea. Of course, sometimes there are such situation when you have to enter the market because the news really suit the conditions on the market, however in vast majority of cases news just ruin everything. Friday is such a day when the market gets ready to weekends. So, the matter here is to try to trade on news in other week days. You can do it if you’re fond of fundamental analysis and long-term trading or investing, nevertheless you must be careful because news can easily turn your deposit into emptiness.
Judging by my experience, it is better avoid trading on Fridays. Fridays and weekends are really dangerous for your trading because stock market is closed and informational vacuum which is very dangerous for trading. Have you ever though about the reasons for financial crises take place on Mondays? Because investors and traders look for the news on weekends and they start to doubt or fear and they sell everything as soon as they can (on mondays). Fridays are dangerous because the market closes and the volatility is high because all the participants of the market get ready for the upcoming weekends. I personally trade and invest in the middle of the week. Sometimes, I invest on Monday evening and Fridays’ mornings, when the markets are more or less stable, but doing something on monday morning or Friday night looks like a Russian roulette for me.
In fact, the title of my topic was a bit wrong since I don’t trade the news and more precisely I try to trade only during days with not significant/important news.
