/12/01 · Holding a forex trade through the weekend presents gap risk as well as large spreads on Friday evening and Sunday evening. Traders opting to hold through the weekend should learn how to navigate these potential dangers. Each weekend, forex traders are faced with a decision /02/17 · An option is lets say you want to hold a position into next week but don't want to take on the weekend risk. You can exit your trade on Friday between pm, then come Sunday morning you can re - establish your position at the same level or you can wait for a dip which sometimes can happen /05/03 · The first thing to consider when trading Forex on Friday is the closing time of the Forex market. The exact time of your terminal can be found in the Market Watch window. In Author: Justforex
Forex Weekend Trading | Tutorial with Weekend Gap Strategy
More often than not, your trades are going to close out from either your stop loss or target being hit. However, there is the odd occasion where you will need to make a decision on whether you should exit a trade or hold onto it.
Holding a trade over the weekend is one of those difficult scenarios where you will have to make such a decision. This question is one I receive quite a lot and in this post I am going to break down the process I go through.
Before we dive in, you need to know holding forex over the weekend there is no single answer — your judgement is going to be the key to unlocking the answer. Price action thrives from flexibility and it applies to this topic as well. There are two distinct sets of questions that you should run through when tackling this problem.
The first set of questions analyse the trade itself. Ask yourself these questions:. If you are on a lower time frame, you are less likely to hold your trade over the weekend for the same reasons. If, however, holding forex over the weekend, you are trading on the daily, weekly, or monthly, your answer to holding the trade is one step closer toward being a yes.
There are more questions to ask. Ask yourself what the overall trend is for the pair you are trading. This is extremely relevant because if you are going against the trend you are taking on more risk, holding forex over the weekend. Often enough this gap will be in favour of the trend. Obviously this is not guaranteed but in regards to managing your risk, it is an important consideration, holding forex over the weekend.
You are opening yourself up to more risk by holding a trade over the weekend that goes against the overall trend. If you are already in the negative with your trade it is best to not hold it over the weekend.
Cut your losses and move onto the next trade! Now, if price is close to your target you should also look to close the trade. One of the key lessons I try to teach is to not let greed manage your trades. If price has been consistently moving toward your target and is with the trend, you can look to hold it over the weekend.
Your risk of price going against you is reduced in this scenario. Practice makes perfect with this stuff though — each trade will have different factors that influence your decision. This is more common sense than anything else. Any big news events are something you should be aware of trading through. Combine that with a weekend and you can get yourself into a tricky situation.
All of these questions together give you an idea of the State of the Trade that will help you make the best informed decision that you can. Your judgement as a trader will be pivotal when deciding to hold trades over the weekend.
Logging the data will be helpful! But wait — there are still a few more questions you need to ask yourself…. Alright, so you have looked at the trade and analysed it thoroughly, holding forex over the weekend. These are all related to and affect your trading psychology.
They are the last checks you make before you make a decision on holding a trade over the weekend. Ask yourself:. The first question is crucial to your success with holding trades. Have you ever held a trade over the weekend and if holding forex over the weekend have, what do your previous results say? If you have never held a trade over a weekend, try it out on a demo account. Collecting data in your journal will give you peace of mind and confidence when trying to decide on holding a trade.
You can still use your live account if you wish — just be certain to log the data so that you can check out your results when you come up against the same dilemma!
If you are stressed by holding trades then you should practice first on a demo account. Your trading psychology is something you need to dedicate time to improving. Just try a few holds on a demo account first if need be!
I have spent a lot of my time teaching the importance of not letting greed dictate your trading, holding forex over the weekend. More often than not, it will cause you to lose trades and this is no exception. If you are currently at a 3 RR and want to get to 4 RR, take a moment to ask yourself whether you are being greedy. The weekend movement can completely wipe out profits. If you let your greed control your weekend trades you are playing a dangerous game.
But if you can truthfully say that you are not holding a trade for greedy reasons, you are in a great position! So, that sums up the questions I ask when I look to hold trades over the weekend.
Flexibility and judgement are going to play a big part in your decision making with this. Each trade is going to be different, as well as the external influences such as news or speeches, holding forex over the weekend.
I definitely encourage you all to try holding some trades over the weekend. Practice really does help with this area of trading. The earlier you start, the easier and more profitable you will make it for yourself in the long run! Your email address will not be published. Hi Nick, thoughts on GBPNZD? I shorted it 0. Holding forex over the weekend you think it is only a temporary rise? Thanks in advance! This should have hit your stop loss by now. GBP is risky to trade at the moment with Brexit causing chaos.
I like how you put everything together my Question is what time frame is good for right entry point? This really depends on the trade, your analysis, recent highs and lows.
If gives you the full context of the pair and can help you decide which time frame to look for an entry on. One other consideration I have is whether it is a buy or sell. Probably not as important on longer timeframes but more so on short. Obviously, to close a sell trade we use a buy transaction.
With all 4 brokers I have used for live trading I have found the spreads to be huge at the start of a week. These oversize spreads holding forex over the weekend easily hit a SL if it is too close, so I am happier to have buy trades carried over the weekend.
Thanks a lot for this awsome article. I really appreciate it. tnx a lot bro, now I know. this is my first time doing that in my trade. I wish it will be ok. Thanks Nick. I was thinking you would holding forex over the weekend an article to address this issue, and you did not disappoint.
I decided to try it out in with demo trades only for now and see what happens. I really holding forex over the weekend the thoughtful and thorough way you address many issues we face as traders. Skip to content Home Should I Hold Trades Over The Weekend? State of the Trade The first set of questions analyse the trade itself.
Ask yourself these questions: What kind of trader am I? What is the overall trend? Where is price in relation to my stop loss and target profit? Is there any big news over the weekend? What Kind of Trader Are You? The first question is a simple yet vital one. What is the Overall Trend? Context is important though. So I often find myself asking that question alongside the next one… Where is price in relation to my Stop Loss and my Target?
The sweet spot with these questions is your judgement of the trade and the state it is in. One of those will be news. Is There Big News Over the Weekend? But wait — there are still a few more questions you need to ask yourself… State of the Mind Alright, so you have looked at the trade and analysed it thoroughly, holding forex over the weekend. Ask yourself: Have I got data to look back on in my trading journal? How does holding a trade over the weekend affect my trading psychology?
Am Holding forex over the weekend being greedy? Do I Have Data in my Trading Journal? How Does Holding a Trade Affect My Psychology?
Should You Trade On Fridays? - Holding Trades Over The Weekend
, time: 6:42How Long Should You Hold a Forex Trade? « Trading Heroes
/06/20 · In this video, you will learn how to avoid that market gaps in the forex market ruin your risk management strategy so that you can become consistently profit /02/17 · An option is lets say you want to hold a position into next week but don't want to take on the weekend risk. You can exit your trade on Friday between pm, then come Sunday morning you can re - establish your position at the same level or you can wait for a dip which sometimes can happen /06/18 · It is not recommended to hold trades over the weekend unless your method is a long-term strategy which incorporates holding trades for a long time – weeks, months. A lot can happen over a weekend. All it would take is for one Bank to go bust over the weekend
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