It is often said that it is better not to trade on Mondays. This is because Monday itself marks the beginning of the week and the day trading begins. The reality is that there are many traders who are not good at finding the rhythm in the chart.
Difficult market on Monday?
It is said that the market on Monday is very difficult. Why is this? There are the following reasons.
low trading volume
In fact, the foreign exchange market on Monday tends to have less trading volume overall. Especially in Tokyo time, the flow is remarkable. Therefore, there are cases where unexpected trends occur, especially on Monday mornings, resulting in big losses. Any major economic news could cause a big price move soon after the market opens on Monday. Low trading volume makes it easier for trends to emerge.
The weekend changes the tide
The forex market is not driven solely by economic indicators. Political events can change the tide. It’s not uncommon for a nice downtrend on Friday to suddenly turn uptrend on Monday. Moreover, there is now a war between Russia and Ukraine, and there is also the possibility that China will invade further. Sometimes the news happens on Saturdays and Sundays.
I can’t catch the rhythm
From a trader’s point of view, it is not necessarily the case that Friday’s trend will continue. Due to the above, it is often the case that it suddenly changes from Monday. As a result, it becomes difficult to grasp the rhythm, and it is often the case that it is just a loss.
When is the best time to trade?
On Monday morning, there is window opening and window filling. There will be many unexpected movements. And most of the cases are in the range until the European time starts. Therefore, if you are going to set up a game, it is recommended to go after the London market. Because if there is a mechanism, it starts here. This is because Asian time is basically just a range and often does not move.
It’s important to wait
As explained above, the flow may change on Monday, so if you’re worried, wait is an option. Sometimes you trade after the trend is clear. It’s better not to put out your hand poorly and get hurt. Many traders don’t trade on Mondays because they can’t predict the next trend.
XM is recommended
XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for trading. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.