The forex market is renowned for its weekend closure, operating from Sunday 5 pm to Friday 5 pm, New York time, leaving Saturday and Sunday devoid of trading activities. However, Traders Union experts note that due to various time zones across the globe, some potential trading opportunities exist during the weekend hours of certain markets.
Considering Weekend Trading: Is it Worth It?
“Can you trade on weekends?” – This question is often asked by investors and traders who want to know whether they can carry out transactions on the financial markets on Saturday and Sunday. Professional traders typically refrain from trading on weekends due to the closure of main markets and the significantly lower liquidity during that time. Nevertheless, some advantages of weekend trading do exist. Here is a compilation of pros and cons prepared by TU experts.
- Ample Time for Analysis: Weekend trading allows traders to devote more time to studying market trends and news, which is challenging during the weekdays for busy retail traders.
- Favorable for Cryptocurrency Traders: Unlike traditional markets, the cryptocurrency market operates 24/7, providing traders with the opportunity to increase their earnings during weekends.
- Testing Strategies: With minimal activity, weekend trading provides a suitable environment to test trading strategies without the pressure of live trading.
- Preparing for Weekdays: Traders can use weekends to prepare themselves for weekday trading by analyzing markets in a calmer setting and fine-tuning their strategies.
- Low Liquidity: Weekend markets experience reduced liquidity due to fewer active participants and scarcity of economic news, leading to less volatility and limited profit opportunities.
- Limited Trading Assets: With most major markets closed on weekends, traders have access to fewer trading instruments and assets, making trading less flexible.
- Odd Trading Hours: To continue trading on major markets during weekends, traders must adapt to odd hours, which may not be convenient for everyone.
Top 3 Options for Weekend Trading
Traders Union analysts have highlighted various markets that stay open during the weekends for potential trading opportunities. Let’s take a look at some of these markets.
- Cryptocurrency Market: The cryptocurrency market operates 24/7, providing a stable and accessible option for weekend trading.
- Tel-Aviv Stock Exchange: This market remains open every day except for select holidays and offers various assets and securities for traders.
- Tawadul Index – Saudi Arabia: The Tawadul market is open on all days except for specific holidays and offers major assets and instruments for trading.
5 Tips for Weekend Trading
For traders who have chosen to venture into weekend trading, understanding the distinct nature of this territory is crucial. To make the most of weekend trading, experts at TU offer valuable strategies and tips to guide you through the process. Here are some essential tips to optimize your weekend trading experience.
- Gap Trading Strategy: Take advantage of price movements between market close on Friday and reopening on Sunday using the gap trading strategy.
- Bollinger Bands: Utilize Bollinger bands over the weekend when market activity is lower to make more accurate predictions.
- Mind Timezones: Be cautious about time zones when trading on weekends, especially when dealing with markets in different regions.
- Analyze and Strategize: Use weekends for further education, attending courses, and webinars to improve your trading skills.
- Get a Broker with Weekend Trading Support: Choose a broker that offers weekend trading or consider opening a separate account dedicated to weekend trading.
Weekend trading is open to any trader who finds the concept intriguing. Embracing this alternative approach holds no inherent risks and can prove to be a rewarding experience. This comprehensive post equips traders with all the necessary information to ensure a successful weekend trading venture. In summary, weekend trading offers both advantages and drawbacks. While it allows ample time for analysis and strategy testing, the lower liquidity and limited trading assets may present challenges. Traders should carefully consider their options and choose the appropriate approach to suit their trading goals and preferences.
Disclaimer: The content of this partner post is provided by Traders Union. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of NewsBTC. NewsBTC does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.