Weekend Trading Tips: Maximizing Profits And Analyzing Markets
The forex market typically closes on weekends, with trading allowed from Sunday 5 pm to Friday 5 pm, New York time. However, due to different time zones, trading can occur during weekends. Some markets also remain open on weekends, but their reliability is a question worth exploring. TU experts researched this issue in more detail.
Would trading on the weekends be a good idea?
Weekends are generally avoided by most professional traders due to the closure of main markets, leading to low liquidity and other issues. Discover the benefits and drawbacks of weekend trading with a comprehensive guide of Traders Union analysts.
Pros:
- Ample time for in-depth market analysis.
- Extended trading hours for cryptocurrency traders.
- Opportunity to practice and test trading strategies.
- Gain a head start for the upcoming week.
Cons:
- Less liquidity and minimal market movement.
- Limited trading options and assets.
- Odd trading hours for major markets.
Weekend trading options
Experts at TU recommend these markets for weekend trading.
- Cryptocurrency Market: Open 24/7 with stable liquidity, providing consistent access and profit opportunities.
- Tel-Aviv Stock Exchange: Open daily, offering various assets like convertible securities, bonds, and short-term certificates.
- Tadawul Index (Saudi Arabia): Open on all days except select holidays, featuring major assets and instruments, including companies like Saudi Aramco and Saudi Basic Industries.
What to do on the weekends if you want to trade
To optimize weekend trading, follow these tips:
- Utilize the Gap Trading Strategy: Profit from price movements between market close on Friday and reopening on Sunday.
- Use Bollinger Bands: During weekends, Bollinger bands offer more stable predictions for trade outcomes.
- Mind the Timezones: Be cautious with time zone calculations, especially for markets in the Middle East that remain open.
- Analyze and Strategize: Spend weekends honing trading skills through education and webinars to boost long-term profits.
- Choose a Broker Supporting Weekend Trading: Ensure your broker fully supports weekend trading or consider switching platforms if necessary.
Weekend trading brokers 2023: top 3
Not all trading apps offer weekend trading, and here are some top platforms that do:
- RoboForex: Known for weekend stock trading, it offers a wide range of assets and educational resources. Regulated by FSC in Belize.
- IC Markets: Offers weekend trading for selected instruments like cryptocurrencies and forex pairs, with fast execution and tight spreads.
- EXNESS: Ideal for beginners, it provides cent accounts, mobile trading, and copy trading services.
Weekend trading strategies
The main trading strategies for the weekend were determined by Traders Union analysts.
1. Gap Trading Strategy:
Gap trading involves buying or shorting stocks with a price gap from the previous close. Traders monitor the first hour of trading to determine the trading range. Going above the range signals a buy, while dropping below indicates a short.
2. Bollinger Bands:
Bollinger Bands help identify trade entry and exit points and determine overbought and oversold conditions.
Conclusion
Weekend trading is not limited to seasoned professionals; it is accessible to any trader intrigued by the concept. The comprehensive information shared in this post by TU experts equips traders with valuable insights, strategies, and tips to navigate the weekend markets with confidence and precision.
