The Midweek Advantage & Disadvantage
The pace of the Forex market is slow at the beginning of the week; particularly, during Sundays and Mondays, the market is quite dormant. But, while this may be undesired for a trader who prefers a highly volatile market and rampant market activity, it works in the favor of those who establish positions on a Tuesday, Wednesday, and Thursday; they can evaluate recent market conditions, and use the results as basis for their trading positions come their moment to enter the Forex market.
Conversely, the disadvantage of trading on a Tuesday, Wednesday, and Thursday is the chance it grants to volatility; volatility deliberately builds until the market becomes too unpredictable. In certain cases, the forex market’s conditions are tricky, and a trader tends to wait until a “solid” condition emerges; however, many times, the situation becomes even trickier since trends are unreliable and prices are pursuing different directions.
In some instances, a trader who held a position on Tuesday waits for the coming of Wednesday to exit the market. For a volume trader, this is a plus since the possibility of a “triple swap” is more likely to occur by the particular day.
Additionally, it is worth noting that Thursday bags the award as the trading day with the highest volatility. For a trader who wouldn’t bet his fate on an extremely volatile and unstable market, entering the forex market some other trading day is the promising option.
So, Midweek or other Days of the Week?
There are pros and cons to trading during the midweek; engaging in a trade on Tuesdays, Wednesdays, or Thursdays can go both ways. Therefore, the biggest factor to consider shouldn’t be a particular trading day; rather, it should be a trader’s strategy and the recent market conditions, as well as a Forex trader’s goals.
Updated on 12. October 2019
Home Based Business Infonet