WELCOME TO THE TRADE TALK TABLE, HERE IS TODAY'S DISCUSSION:
What can you do as a Day-Trader when the markets are closed?
By: Seth Arnez on October 30th, 2021
The foreign Exchange markets closes every friday at 5:00 PM, and opens every sunday at 5:00 PM. Unless you are trading Crypto Currencies such as BTC, XRP, ETH. Crypto Currencies can be traded 24-hours a day 7 days a week. Most Bank institutions are closed during the weekend which is why the forex market is closed as well.
When the markets are closed most Day-traders utilize this time to analze for future market movements, and trade opportunities leading into the following week. Once the markets open on sunday they are typically ready to place thier first trade of the week (konchar, 2019).
What can you do as a Day-trader to plan for the next week?
One thing we've all learned from past events is that proper planning prevents poor performance. On the weekends Most Day-Traders spend alot of thier time backtesting different strategies, and techniques that they plan on using the following week. By looking at previous market patterns Day- traders are able to predict future market movements. Setting Long and short term profit goals throughout the week can also help you plan as a Day-Trader (Eliades, 2019). One of the most important things to plan as a Day-trader is your trading schedule. Most part-time Day-traders are still employed and are unable to follow the charts on the weekdays (konchar, 2019). Planning a time to trade in the different sessions throughout the day can give you a stratigic advantage over Day-traders who are just trading every moment they can get.
How can you create a P.O.A (Plan Of Action) as a Day-Trader?
It's critical to know what you're preparing for. Examine the upcoming week and choose where you should focus your attention. You've conducted the analysis and should be checking your calendar for any impending announcements or important fundamentals. After you've completed your research, you can start speculating on how the market will react (Eliades, 2019).
Which way do you want to go? how many pips do you plan on securing? Have you identified the pairs psychological key levels and areas. Is your chosen Pair in a trend, a downtrend, a big consolidation range, or an uptrend? Have you set your SL and TP positions yet? How can you include your risk management objectives into your overall strategy?