What are the best and the worst times to trade?


Jul 3, 2020
Being a Forex trader, one must understand the significance of the appropriate time to trade.

The kind of returns one gets largely depends on the time they choose to make a trade. That is, you should trade when the market is as favorable and predictable as possible so that you can use suitable trading strategies for fetching favorable results.

As a trader, you must be skeptical about questions like, is 1.1800 area ready for opening a short position or should you wait for 1.1900?

Knowing when not to trade is equally important as knowing which area to enter a position in.

Let’s take the EURUSD pair as an example. Suppose the pair is forming a perfect bearish pin bar at resistance, but if this trend happens right before an ECB rate decision, this is a wrong time to start a trade.

We can say that the signal’s location was correct, but the timing was not favorable.

To get an insight about the best and worst times to trade, read the factors listed below:

  1. Trading Before or After the News Breaks
A stagnant market is every trader’s worst nightmare. We need the market to be in a constant flux to make quick money from it.

Sometimes it happens when the market trend seems to be on an unending upward curve and your profits double every day.

However, an incompetent Forex trader might get swayed by these good times and invest a lot of money without having proper knowledge of the market.

Instability in the market has the potential to produce huge profits.

In the Forex market, news from the economic and political front tends to create a whiplash effect, making market analysis nearly unpredictable.

While a volatile market can fetch you a lot of money, an immediate trading action upon the news may also cause you to lose money.

Making a trade during an event when we cannot predict the outcomes do not always produce favorable results. It also nullifies the signals generated by the bank manipulation trading techniques that follow the trends of the daily charts.

There is little to no advantage in trading according to the hot news headlines of the day.

The same goes for entering a trading position just after a huge event. Even if lady luck shines in your favor and the market starts to crawl in your favor, you would likely be stopped midway before you can actually bag your profits.

You should first get a market understanding and then start trading to get greater results.

Giving too much attention to Forex news and fundamental variables can cast a negative effect on your performance as a trader. The ultimate indicator of the market is price and reflects the exact variables that are affecting a Forex market.

Placing your trades immediately before or after the high-impact news, on central bank rate decisions and non-farm payroll is not a good idea.

Always wait till 5 pm EST before you dish out your hard earned money, being influenced by a major event.

Instead of being impulsive with your money, wait for the settlement period from 4 pm to 5 pm EST each day. Or you can wait for another 4-hour candle to close, if trading the 4-hour chart, before committing to any capital investment.

However, there is a huge gap between making the strategy and then executing it. The process might sound simple, and quite frankly, it is. But the patience it takes to wait is hard to muster. Just because the market is moving or unsteady, doesn’t mean that you have to trade in it. Most amateur traders fail and lose their capital because they are impulsive with their money.

You need to wait for the quality setups that are actually pretty rare and if you always concentrate on the volatile market, you’ll never realize when the opportunity comes knocking at your door.

  1. Trading on First & Last Day of the Week
Worried young attractive businesswoman sitting at table and looking at laptop screen while touching temples. Front view with big window and blurry green view outside in background.

The first day of every trading week witnesses a relatively slow participation from the traders as they come back online from a long break of 48-hours.

It’s the time when market too struggles as in which direction it should head for the upcoming week. Keeping this in mind, you should maintain a safe distance from the market each Monday, until and unless you had already established a strong position last week.

On the other end, we have Friday, the last day of the week.

Unlike the first 24-hours, the last 24-hours of the Forex trading week encounter lower liquidity. We all are aware that technical analysis works best in case of high liquidity and that’s the prime reason one should choose Forex over equity.

You also run a risk of losing if the market opens at a huge gap the next Monday.

So, if you want to cut the chase and become a leader, avoid taking a risk just after or before the onset of the weekend. Between Monday and Friday, the latter one is known to be the crook. By eliminating both the days, you can open new trading positions from Tuesday to Thursday as the quality setup happens between these days and can help you play a fair game.

  1. Trading in a wrong Mental state
Worried young attractive businesswoman sitting at table and looking at laptop screen while touching temples. Front view with big window and blurry green view outside in background.

Forex trading requires your full attention and a lot of mental juice. Only the most calm-headed ones can reach the top.

Mental pressures or stress can adversely affect your trading abilities. If you cannot put a check on your emotions or you get too anxious easily, then Forex trading is not for you.

We all have one of those “bad days” when your attention is divided, your focus isnot on the task, you haven’t slept well last night or you’re just tired.

When the conditions are such, it is best to take a break and settling yourself for a new trading week ahead.

Another high-alert situation is when you have a consistent losing streak for the last consecutive trades that you had placed. Such a circumstance can leave you stressed and emotions might be running haywire. In such a scenario, stay away from trading even if you have A+ setup sitting right in front of you.

It is especially important to take a break from trading if you’ve been on a losing streak. Take a break and come back with a fresh mind. Start with small and then as you build up your confidence, go for larger investments.

Summing Up:

To conclude, as a trader it’s vital for you to know the right time to trade. You need to have a fair idea of when the market is ripe and it is advantageous to make a trade and when the market is devoid of any liquid cash and it is not the suitable time to invest your money.

Avoid trading just before or after a major news when the market goes into a volatile position.

Always opt for a 1 day or at least a 4-hour time frame. Waiting till 5 pm EST is the best strategy to avoid the inevitable “chop” that might come.

Trading is as much about a mental strategy as it is an economic one. So, you need to be on the top of your game to make out of the Forex Market. So, in case if you feel tired or feel like your focus is not there, simply take a break from trading and come back with a fresh mind.

When it comes to trading in the Forex Market, Tuesday to Thursday are the safest days to place a trade. Avoid Monday and Friday which are high-risk days, Friday being the worst of the two.

Attaining mastery over the trading game as well as your own emotional climate is a pivotal point to safeguard your capital in volatile market conditions.
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Reactions: cm1995


Apr 12, 2019
I dont think that there is right or wrong answer to this question. Every trader is searching for higher or lower level of volatility, depending on strategy. If you need high volatility than trade during US and UK time. Markets are less volatile during Asian session

Zeenat shein

Apr 11, 2020
Currency trading is unique because of its hours of operation. The week begins at 5 p.m. EST on Sunday and runs until 5 p.m. on Friday. Not all hours of the day are equally good for trading. The best time to trade is when the market is most active.