Many people see forex trading as a day job, while others see it as a hobby meant to have fun while earning a little money. In most cases, everything related to finance, trading, foreign exchange, etc., is done during normal business hours, Monday through Friday. But did you know that weekend trading exists? You can do it, and we’ll show you how to do it.
What you need to know
The first thing that comes to everyone’s mind is “how is that possible since most markets are only open during opening hours”. There are a few ways around this problem. With forex trading, we have the ability to trade anytime, anywhere. This is one of the aspects that makes it really appealing. But some limits appear during weekends. You need to understand how the markets work, especially during weekends, and examine their timings. Some markets are open 24/7, while others operate on a strict schedule.
Why trade on the weekend
Imagine having a hectic life during the week and having little or no time to devote to activities such as trading: this is one possible scenario. The other scenario is that you may be trading full time and are considering your options to trade on Saturday and Sunday. One of the main advantages of weekend trading is that you can analyze the markets in peace. Most people only work during the week and choose the weekend as their time to relax, which opens up a whole new avenue for those looking for a quieter time to trade.
Moreover, it is a great time to analyze the markets, study new strategies and look for new trading opportunities. So not only can you trade better, but you can also focus on improving your strategies, which will ultimately improve your trading.
What markets are available?
Again, it depends on what you’re looking for, but we’re going to look at three markets that are available on weekends.
- Cryptocurrency: Here, you wouldn’t have to worry about when you are trading since it is open 24/7; however, it is always quieter during the weekend. What also stands out here is that there is often more liquidity on Saturday and Sunday compared to the rest of the week and other markets. This means there is more stability in your trades.
- Tel Aviv Stock Exchange: Open year-round, but closed only on certain holidays, it’s on our list for that exact reason. What’s also great is that you can choose from convertible, corporate, and government securities, as well as short-term certificates.
- Tadawul index: Also open for most of the year with special closing days, which also change every year. You will be able to trade almost all major assets.
Like everything, there will be challenges to overcome and some tips and tricks to help you move forward. When trading on Saturdays and Sundays, consider these tips:
- Gap trading: Having a trading strategy is arguably one of the best ways to prepare; this is where gap trading comes in. Cited as one of the best strategies for weekend trading because you can capitalize on price movement between markets that close on Fridays.
- Bollinger Bands: This is a statistical chart that shows the prices and price volatility of commodities and financial instruments over time. How will this help you? During the week, the Bollinger bands show that the high predictions are unstable. Saturdays and Sundays are stable. This is where you can dig deeper and make correct predictions about trade outcomes.
- Time zones : This must always be taken into consideration. Think of it this way: you are on the East Coast of the United States and you want to trade on Saturday in the French markets. Check the time to be sure to catch the market at the right time.
- Strategy : A wonderful time to unpack your next trading strategy and refine it. Take advantage of this time to train yourself more.
Use a broker: Brokers are experienced, so it makes sense to find a broker or brokerage services that specialize in weekend trading. However, you can also turn to experienced traders who are familiar with weekend trading.