Stay Out Of The Market
Despite the fact that the Forex is unbelievably profitable, there are times when you ought to stay out of the market.
However, newbies believe they should trade at all hours of the day or night. And this is not so. Slow periods are not ideal times for scalping pips or placing short term positions.
The days before and after a major holiday like Christmas usually present a flat market; this is because investors take time off to be with their families or go away on vacation. These periods are referred to as “thin market times.” They usually offer low volatility and bearish trading volume. Easter is another great example. You won’t see great trading opportunities until a few days after all the major players return from their break.
A vast number of traders have preferences when it comes to specific days of the week. While some favor Tuesdays, Wednesdays and Fridays, others shy away from Fridays as they believe it’s when erratic volatility presents increased risk.
A few Forex enthusiasts keep away from trading between sessions; they believe they can make money on Internet recommendations which point to the American and European sessions as the true money-making periods of the Spot Forex.
And if you’ve been around the foreign exchange long enough, you know that trading during news events can be dangerous. This is especially true during important announcements that affect a country’s economy. Non-farm payroll and FOMC rates are perhaps two of the most crucial.
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