Both the time frames you trade within and the times at which you actually trade, are both important in Forex trading. Now although the Forex market is open 24 hours a day and around 5.5 days a week, this doesn’t necessarily mean that you should fully take advantage of this, since Mondays and Fridays aren’t particularly ideal days to trade.
It is ultimately up to you, whether or not you decide to trade currencies on either or both of these days, but some people will recommend that you avoid currency trading on these days.
This is because on Mondays, the market for currencies is essentially awaking from its time off over the weekend. The FX market is really undecided right after weekends; the market could either confirm a previous trend, or start a completely different one.
In regards to avoiding Forex trading on Fridays, it isn’t ideal to trade on this day of each week because of the sheer volume of trades being closed by traders and investors in the market for currencies. With many orders being closed, the conditions of the markets can become much less desirable.
Because of the above reasons not to trade on Mondays and Fridays, you will probably want to trade currencies on Tuesdays, Wednesdays and Thursdays instead, or least carry out most of your trading on these three days. Although this is totally up to you of course: some Forex traders continue to trade on Mondays and Fridays and don’t encounter any problems.
It is up to you at the end of the day, whether or not you decide to avoid currency trading on Mondays and Fridays. You will of course most probably want to ignore this information if your Forex trading strategy goes against it. For example, if your trading strategy is all about trading news releases, you probably won’t want to follow this information since the nonfarm payroll is released on the first Friday of each month.
If you are a beginner, you should ideally focus on long-term profits, using long-term currency trading strategies. So, if you do, this information won’t apply to you since points of entry don’t matter too much when placing long-term orders – the point at which you enter a trade is less significant. However, you might want to consider actually avoiding trading currencies on both Mondays and Fridays, if you are using shorter-term trading strategies that involve trading on these days (unless of course your trading strategy goes against this information).
Remember, even if you do decide to avoid trading currencies on Mondays and Fridays, you don’t have to avoid trading entirely throughout these days. The market closes around 4PM each Friday and opens around 5PM each Monday, New York time. It is around these times that trading is best avoided, if you trade using shorter-term trading strategies (of course, if you are looking to hold open positions for months or even years in order to deduce long-term profits, you won’t want to close any orders over weekends). You can still trade on Mondays and Fridays while following this information; just ensure that if you do decide to, avoid the open and closing times of the currency market as best you can. Using a world clock in Forex trading, can help you to do this and keep track of the market’s opening and closing.
In conclusion, some people will recommend Forex traders to avoid Forex trading on Mondays and Fridays. This is because the market for currencies is typically less predictable on Mondays; it can either confirm previously established trends or begin completely new ones. Fridays are also best avoided, due to the large volume of trades being closed, since Forex traders would rather close their trades before the markets close themselves and this can lead to less desirable market conditions on Fridays. As previously mentioned though, it is up to you as an individual Forex trader, whether or not you decide to follow this information and avoid trading on either or both of these days, but it is a good idea to not trade on these days if you are less experienced and/or use shorter-term Forex trading strategies (unless your trading strategy involves trading currencies on either or both of these days). Remember, you can still trade Forex on Mondays and Fridays, but if you do decide to, you will likely want to avoid the FX market’s opening and closing times as much as you can.