Are you losing in forex constantly? Definitely, you are putting your efforts in the worst times of trade. I think you are struggling to find the right trading session.
It is simply as if you are hitting the arrow below the target. You will never win the game.
The same happens in forex. Traders investing in the no-entry times always get mad to face failures repeatedly.
In this guide, we’ll tackle those timings during which you should stay out from the market, and show you what the worst time to trade the forex market is?
The worst times to trade forex are half an hour before and after trade news announcements, the first and last working day of a week, and when you are not in a trading mood. Fridays and Mondays are the worst days to trade. Months of December and Summer (June, July, and August) are the worst months to trade Forex.
Keep reading till the end!
3 Worst Times to Trade Forex
Forex trading isn’t too difficult if you know about the worst time to buy or sell. It is a long way studying process. However, it’s very personal in handling.
Remember a trader should always wait for good times with trading psychology and risk management.
At worst timings sitting on the sideline may be the smart decision.
Just read on to know about the three worst times to trade Forex:
Soon Early or Next to The Important News Transmission
Typically, half an hour before news transmission is considered as worst trading span. Important news about interest rates and NFP (Non-Farm Payroll, a macroeconomic indicator the US) turn serious incidents for the progress of volatility in the market.
As it is clear that volatility brings money. Let’s go through the reason:
Why don’t trade half an hour before the news?
Before and soon after news announcements are worst due to the reasons below:
- When the market is getting ready for the news transmission, but it has already drawn the best trading signs, 30 to 60 minutes early to news, the unpredictable news may easily target your stop-loss as the market can up and down quickly.
- Investing during the News bulletins is quite unpredictable.
- Usually, this time period rests for 4hours. And remains till the closing time of the trading session at 5 pm EST. It results worst until everything gets clear after news broadcasting.
First Day and The Weekends
From a trading point of view, the first-day shows fewer movements. It is the returning time of Stock players after the weekend. Plus, the pointers indicate the new direction of pips movements.
You can easily understand the worst days of forex trade by the table given below.
Below is the table of the average pip range daily:
From the chart above, it is clear that:
Fridays usually remain busy till 12:00 Pm EST. After that, it drops deadly at its closing timings which are 5.00 pm EST. So, you may get lost before 12:00 PM EST on Fridays. Plus, weekends always start early but are worst to trade the next day time.
Now, depending on all these, everyone should be aware of the worst days with low pips range. Only take a rest on Fridays and Mondays to avoid loss.
Hence the first 24 hours of the week represent a low volatility level. And low volatility results in a loss. In this way, Monday is included in the worst days of Forex.
On the other side, Friday stands as the worst day for Forex traders.
This is the last trading day of the week with slow volatility. Moreover, it is not a safe decision to take further risks before the weekend. Wise traders never try to stand themselves in loss-making positions.
When You Are Upset or Not Ready to Trade Forex
Mental discipline is the key to efficient trading. Traders with controlled emotional sentiments enjoy successful trading. Aggressive and emotional traders always face failure in trading.
Although discipline is not everything, only disciplined traders have command of their emotions. They can take a stand on themself in difficult days of the market.
Generally speaking, trading is a game of mindset. You would agree with me that it is 80% mental game and 20% technical. You should miss 1 to 2 setups to avoid the
risks due to emotions.
When to never trade?
- When you are not feeling well or sleepy.
- You have to do some other works instead of trading. That may distract your attention.
- If you have already closed 3 or 5 loss-making trades. It is the worst moment for you to invest.
- At the times you are not in a trading mood. Take a break, it will be helpful to you. After the break starts again with full confidence.
When Should You Quit Losing Forex
In a trading strategy, no day is a bad day but the days with less volatility results in bad luck for you. Some moments are really hot with high volatility bring massive turnover. On the other hand, when the market is not busy, the duration is dangerous to trade.
Remember you don’t force a trade-in worst day.
For example, when a trade will return you 0$ you feel no tension. But losing 30$ in trade will psychologically frustrate you. So, the exhausting situations of the market are the worst for traders to invest.
Because such conditions drop the volatility rates. Trading becomes unpredictable. Now, this is the time of the right decision. Only a few traders prefer to stay out of the stock. At that time quit losing Forex trade is a wise choice.
Which Months Are Worst to Trade Forex
An update forex trader steps forward with a strong strategy. In this way, he/she can get more on the forex market. You can simply get it by following the perfect entrance and exit.
Forex trading markets don’t work on Christmas, New year, and the summer holidays. Which provides time to rest you as well.
During 15th to 31st of December are the worst time frames for forex trading.
Why do not trade in December?
Because in December, the slow rate of trade results in low volatility. Low volatility may bring loss. This may increase the trader’s difficulties. Before and after Christmas are the slowest days on the Forex stock market. This situation may remain until mid-January.
Throughout the summer months, most of the bank staff take their holidays.
As a result, the Forex market gets slower with a few traders. Generally speaking, December and summer months are the worst to trade. When markets are Flatt there is the point to trade.
By this post, it is clear when not to trade is crucial during the worst time. Traders should have a plan to skip trade when the market goes against their favour.
Although Forex markets are available 24hours a day, it doesn’t mean that you can trade them continuously. Stock markets remain poorest during summer holidays especially June, July, and August.
On the other side, do not even forget that broker selection is one of the important decision to become a profitable trader. We found ICMarkets is a reputed regulated low spread broker out there.
Most traders reinvest their new positions after summer in May.
Once again never put your trade in the second half of December. The market is dry since the population is busy for holidays. Because of low volatility, the market is unpredictable.