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Does the forex trader know what he wants?
The forex trader should always have a goal. The career ladder is irrelevant for a trader, so it is important to know what to strive for in the end.
In this and the next article we will talk about a coaching session with one of the members of the Traders Club. Session topic: “What are the expectations of traders from trading in the Forex market, and what prevents a trader from achieving success.” It consisted of four parts:
- What goals do you set for yourself in life?
- Why Forex and what are your expectations from trading in this market?
- What prevents moving forward – what fears and concerns?
- What needs to be done to achieve the goal?
It seems to be simple questions, but problems made themselves felt at the very beginning.
Defining a goal for a trader is half the success
In this case, the main desire of the session participant (let’s call him Alexander) was to travel more. A great desire, however, when we asked him to tell us more about him, our hero stammered.
It turned out that he already travels quite often, he just wants to do it even more often, and for this he will have to leave his job, but also maintain the existing income level. Further, even more interesting.
Question: How do you want to travel? After all, there are many options – you can just pack up and go to another country (usually warm, but with the sea), you can go on a tour of Europe, for example. Do you have an understanding of the format of your new lifestyle?
It turned out that just this understanding is not there, there is only the phrase “I want to travel more.” But we succeeded in clarifying this. Alexander would like to fly to a new country and “test” her week: if you like it, stay for a month and a half, but not – go to another country. However, he does not plan to spend the whole year abroad; his format is part of the year there, part of the year at home. And here it turns out the most interesting.
“He who does not know where he is sailing, there is no tailwind” (Seneca)
“What will you do at home?”
“Ok, so you flew in, you stay at home all day, you don’t need to work, and all your friends work and can meet with you only in the evenings or on weekends.” Who will you go bowling or billiards with during the day? A week you are alone, and then?
– Need to think. I will devote more time to my parents.
– Well, this is important, but how many days a month are you ready to sit with your parents? The first couple of days you will tell them about your travels, you will show photos, a couple of days help around the house – and then?
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– I do not know, need to think about it.
– Okay, here’s your first assignment – to form a clear vision of the goal, the lifestyle that you want to come to. As you can see, he clearly goes beyond the phrase – “I want to travel more”, and this is what your motivation and your actions are based on. It is important!
And what about your goals, dear beginner trader? Can you say that they are crisp and clear and cover all aspects of the life that you dream of?
Why forex trading? What do you expect from him?
Everything is simple here. Forex is earning without reference to the place of work, to superiors and other restrictions. Freedom and mobility, employment of 20-40 minutes per day (this is how our teaching system works, in other schools the trading time can be very different – approx. the author).
According to his original plan, Alexander considered it realistic to achieve the desired income level in 6 months. In the process of our coaching, it turned out that he would need more time. And here is why – we will tell in the next article.
Discuss trading objectives
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Online School of Traders Roman Bars
My Forex trading training school appeared in 2020. Even then, I began to teach my first students my strategies. Over 3 years, more than 1800 people have passed through educational master classes and trainings. Intensive participants earned more than 30 million rubles, only at the stage of training.
The ‘Weekend’ Forex Traders Lifestyle (How & Why It Works)
Some people hate working on the weekends but I love it, in fact, I look forward to it, here’s why…
As a trader, I know it’s critically important that I am as prepared as possible for the upcoming trading week, and I have learned over my 15+ years in the market that the best time to do my market analysis and make trading decisions, is when the markets are closed.
Of course, what I just described is the opposite of what most traders do; frantically checking the charts throughout the day during the week, hoping or praying and ultimately making terrible choices about when to enter and exit the market. Whereas, if they would just learn how to do their market analysis on the weekends and take the rest of the week off, they would not have to hope or pray because they would be strategically preempting their decisions and actions in the market with logic and objectivity.
Now, I may be exaggerating slightly with “take the rest of the week off”, but what I mean is, most of your time spent in front of the charts should be on the weekend. During the week, I will monitor the market lightly each day, maybe 10 to 15 minutes at the start and end of the day. If there is something to do that meshes with my weekend-analysis, I will place the orders and walk the hell away from the charts until tomorrow. I DO NOT want to be consumed by the market or constantly staring at charts, instead, I want to be out enjoying the fruits of my craft (because being a trader rocks). By the way, being out and enjoying your life will have the unintended benefit of helping you improve your trading results, because as I’ve discussed in-depth in an article on why you shouldn’t watch your trades, the less involved you are with your trades, the better your trading performance is likely to be.
What is weekend market analysis?
So, what does my weekend analysis look like? What do I ACTUALLY do, you might be wondering. I am going to explain it to you then show you on the charts later on…
First off, 95% of my market analysis is done on the weekend and takes place on the weekly and daily chart time frame (I will explain more on this later). It’s no big secret, what I am doing is basically looking for key chart levels of support and resistance, swing highs and lows, event areas and daily chart price action signals (See linked terms if you are unsure what any of these things are).
Essentially, what I am doing is reading the story on the chart and mapping the market from left to right. I am reading what has happened, what is happening and making a final decision of what I think might happen next (the upcoming week). I want to have all my key levels drawn in, my bias (bullish or bearish) written out along with the chart condition (uptrend, downtrend, large sideways range or tight / choppy consolidation) as well as taking note of any imminent trade setups that I am looking at.
WHY you should do your trading analysis on the weekends:
Before I get into the step-by-step breakdown of how I analyze the markets on the weekend, I want to make sure you know why this concept is so powerful so you that you start putting it into practice and reaping the benefits of it as soon as possible:
First off, end of week and end of day analysis obviously saves a lot of time compared to day trading, allowing us to truly enjoy the fruits of our craft, but this is not the main reason I do my analysis this way, not by a long-shot…
You see, the end of the week means something in the market. In fact, it’s very important because it shows an entire 5 days or 1 week of trading in the market, showing who won the battle between bulls and bears that week. The market will have shown part of its hand at week’s close and there is far more weight behind where the market closes on a Friday compared to any other day of the week.
Note: This doesn’t mean “weekly chart trading”, it means END OF THE WEEK analysis; identifying the key levels and trend and if any trade signals formed over the previous week. In other words, using the weekly and daily chart to get the complete picture and then develop your approach from that.
Another big reason why this end-of-week analysis approach works so well is that it contributes to a low frequency trading approach, something I have written about quite extensively in various lessons over the years.
When you trade less, it improves your trading performance over the long-run, and there are many studies that show this. This is partially why the data shows that women make better traders than men; because they trade less frequently than men do as I explained in my recent article What is the weakest link in your trading?
The market is slower than we think, meaning good trades take time to play out, and over time you will agree. You look back at trades you were in and think, “I should have held that longer”. This hindsight regret should teach you to hold trades longer and have some faith in your analysis. The end of week analysis will help you, and the end of day entries will further boost your performance and clarity, here is how I do my analysis….
Here is a summary version of my trading routine
My weekly and daily trading routine is a lot less complicated than you probably think. First off, as I’ve written about in a recent article on the power of trading routines, the most important thing to remember here is that all of this has become a HABIT for me. The routine of writing my weekly market commentary, which I started back in 2008, still helps me after all these years.
You must develop the proper trading habits if you want to become a successful trader, as in any other profession.
The discussion that follows is basically a step-by-step explanation of how I create my weekly members market outlook, which, coincidentally, was something I was doing BEFORE I ever had any students. It should go without saying that this is something you should be doing too; creating your own weekly market outlook will provide you with a ‘road map’ to the market each week that will help guide you in making trade decisions in the ‘heat of the moment’. Just as a general in war preempts his strategy, so you must preempt your trading strategy so that you are not making impulsive decisions in the middle of a heated market move. Therefore, you often see me write in my market commentaries something like, “We will do this if this happens this week, or bullish above this level, wait for this to do that and to monitor XYZ level, etc”…I am laying out a road map so that you can preempt your trading week rather than making decisions in the ‘heat of battle’…
The very first thing you should know is that I don’t look at every Forex pair, not even close. I have a select number of my favorite Forex currency pairs that I follow and these are the ones I have open on my MetaTrader 4 trading platform and I really don’t look at any other ones. I do, of course, trade other markets, like Gold, Oil and several Stock Indices, but I am not trying to analyze and follow 30 different markets each week as many traders do, so keep that in mind.
The first thing I do is open my charts and look at the weekly time frame to plot the key levels and to get a good bird’s eye view of the long-term market trend. In the chart example below, I have drawn in the key support and resistance levels and I’ve marked on the chart the obvious overall trend of the market, so you can see what I am thinking when I look at it. It’s important to know what the current long-term market condition is (trending up or down, sideways etc.), in this case the long-term trend is up, as we can see below. This fact, along with the key levels you plotted, will work to guide your trading decisions throughout the upcoming week, as we will see later…
Here’s another example…
The next thing I do after having analyzed the weekly chart as discussed in Step 1, is to drill-down to the daily chart time frame, where we will do a few different things…
- We are drawing in any obvious support or resistance levels that perhaps were not obvious on the weekly chart.
- We are identifying the near-term daily chart trend, so we can decide which direction we will look to trade for the upcoming week (this can be different than the weekly trend).
- Scan for any obvious price action signals for potential trade entries.
Here’s how it looks on the daily chart of the same EURUSD weekly chart in the first image above…
Note: If the daily chart is sideways, always refer up to the weekly chart for which direction you should look to trade in. So, if the daily chart is sideways or range-bound, but the weekly chart is in a long-term uptrend, then look to trade long. In the chart above, the trend was recently sideways but now is showing signs of switching to a downtrend following the recent close under support near 1.1660 – 1.1620.
Here is the GBPUSD daily chart that follows the GBPUSD weekly chart view from Step 1. Notice, we have drawn in a near-term support zone that wasn’t visible on the weekly and we have marked a potential pin bar signal trade which we discussed in our recent weekly trade outlook.
Note: If there are daily / weekly signals there from the Friday’s close, then we plan a trade for the Monday of the next week, and if there isn’t just yet then we WAIT for the daily chart to show us something that following week. Also, the entries are all triggered by end of day on the daily chart, we aren’t taking weekly chart signals. But, if a weekly chart price action signal did form the previous week, that WOULD CERTAINLY influence our approach and decisions on the daily and even 4 hour or 1 hour chart for that next week.
This article has given you a glimpse into how I do my weekly market analysis on the weekends. I hope now you can see that market analysis is actually not all that difficult, you really just need to make it into a routine so that routine develops into a habit.
As I mentioned above, my weekly market commentary has become a habit for me, even if I had no students I would still be marking up the charts and making my weekly analysis on the weekend, because I know how important it is to my trading performance. Staying in-tune and in-touch with the market is critical to your trading success. You must understand the ‘story’ the chart is telling you and the best way to do that is to do what I have outlined in this lesson.
Therefore, my members trade setups commentary is a great tool for you to learn from. You are essentially ‘in the trenches’ with me as I walk through the charts and do my weekly analysis. My weekend market overview, as well as my members daily trade setups analysis will allow you to ‘look over my shoulders’ and see what I am seeing as the price action unfolds throughout the week. Most of the time I won’t do anything, because I prefer to not trade just any signal since I am waiting for the best setups. So, get used to being patient and make patience your best friend if you want to learn my trading approach.
You see, I want to increase my probability of winning and that is why patience is something anybody that learns my style of trading must master. The act of trading only takes a small amount of time, so there is a lot of down-time that we can use to further our knowledge by reading, studying, and working to master our craft. I can’t spoon-feed you, but I can show you how I’m seeing things in the market via my trading course and members trade setups commentary. My hope is that by taking advantage of these tools to ‘look over my shoulder’ as I carry out my chart analysis and plan trades, you will learn something and start putting all the pieces together so that one day you will be able to replicate the same or similar trading routine and achieve consistent trading success.
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Do Futures Trade on Weekends? (Weekend Trading)
As you may already know, futures are standardized contracts which trade on an exchange. Unlike the stock market, futures contracts trade almost round the clock during the week, so you may be wondering if they also trade on weekends.
Strictly speaking, futures do not trade on weekends, but due to differences in time zones, the Asian big markets (Sydney, Tokyo, Hong Kong, and others) open for a new week much earlier than the U.S. market. So, the global and US futures market starts trading on Sunday evening in the US.
There are many things you need to know about futures exchanges in the US and their trading hours. To learn more, keep reading.
Trading hours For the Biggest US Futures Exchanges
Do Futures Trade On Weekends?
With the availability of electronic trading platforms, such as the Globex platform, futures contracts are now traded globally. So once any exchange is open in any part of the world, futures can be traded.
The round-the-clock global market starts with Australian market — which opens around 5 p.m. Eastern time — and ends with the close of the U.S. markets at about 5 p.m. ET, by which time the Australian market has opened again for a new trading day. As a result, the futures market is open for 24 hours each day from Sunday to Friday.
However, there are slight differences in the trading hours of the various types of futures in the biggest futures exchanges in the US. Let’s look at some of the exchanges and their trading timetable.
Chicago Mercantile Exchange
This is the biggest futures exchange in the US, and they have their headquarters in Chicago. They have several product categories, including energy futures, agricultural product futures, equity index futures, foreign exchange futures, metals, interest rates, and even weather. Their trading hours are usually stated in Central time (CT). See examples below:
For metals, such as gold, silver, and copper contracts, trading starts from 5:00 p.m. CT (6:00 p.m. ET) on Sunday and closes at 4:00 p.m. CT (5:00 p.m. ET) on Friday. There is always a 60-minute break each day, starting from 4:00 p.m. CT (5:00 p.m. ET).
Most of the contracts under this category start to trade by 7:00 p.m. CT (8:00 p.m. ET) and temporarily close by 7:45 a.m. CT. After about 15 minutes break, the normal U.S. trading day starts by 8:30 a.m. CT (9:30 a.m. ET) but closes early, at 1:20p.m. CT (2:20 p.m. ET).
In the energy category, trading begins at 5:00 p.m. CT (6:00 p.m. ET) on Sunday and closes at 4:00 p.m. CT (5:00 p.m. ET) on Friday. A 60-minute break from 4:00 p.m. CT (5:00 p.m. ET) to 5:00 p.m. CT (6:00 p.m. ET) each day is the only period without trading activities.
Trading starts from 5:00 p.m. CT (6:00 p.m. ET) on Sunday and closes at 4:00 p.m. CT (5:00 p.m. ET) on Friday. Just like the energy futures, there’s a 60-minute break each day, starting from 4:00 p.m. CT (5:00 p.m. ET).
Intercontinental Exchange (ICE)
The ICE started with energy futures but has since expanded to include foreign exchange, interest rate, agriculture, equity, and metal futures. The exchange is usually open for 24 hours each day from 5:00 p.m. ET on Sunday to 6:00 p.m. ET on Friday except during the maintenance period, which normally starts from 6:05 p.m. ET every day.
WTI, Brent crude, and other energy contracts trade from 7:50 p.m. ET to 6:00 p.m. ET the next day. The period between 6:00 p.m. and 7:50 p.m. is for clearing and maintenance. The week opens on Sunday evening and closes on Friday evening.
Currency futures contracts trades from 8:00 p.m. ET to 5:00 p.m. ET the next day, starting from Sunday to Friday. Both the currency pairs and dollar index are traded.
For agricultural products, such as cocoa, cotton, and coffee futures, trading begins at 9:00 p.m. ET and closes at 2:30 p.m. ET the following day, from Sunday to Friday.
Equity index futures
A lot of global equity index contracts trade here, especially European equities. The market opens by 8:00 p.m. ET each day, starting from Sunday, and closes by 6:00 p.m. ET the next day. The market closes for the week by 6:00 p.m. on Friday.
Cboe Global Markets
Cboe Futures Exchange (CFX), the futures exchange section of the Cboe Global Markets, are well-known for their volatility index futures — VIX futures. In addition to the VIX, they also have S&P 500 variance futures, Treasury note volatility index futures, corporate bond index futures, and recently, AMERIBOR futures.
Most of these products trade from 8:30 a.m. to 3:15 p.m., Mondays to Fridays. This is the only period you can place a market order for the products. However, there are extended trading hours — 3:30 p.m. to 4:00 p.m. and 5:00 p.m. to 8:30 a.m. — when stop/limit orders are permitted.
Nasdaq derivative markets list stock futures on more than 100 underlying shares. Trading is done electronically via the Nasdaq Futures (NFX) platform. The open session commences from 7:00 p.m. ET and closes at 6:00 p.m. ET the next trading day, from Sunday to Friday.
Holding Positions Over the Weekend
Even though the market is closed, traders can (and some do) leave their trades open over the weekend. But this can be very risky, especially for a trader whose trading style is not suited for this practice. What do I mean by this?
There are different styles of trading — scalping, day trading, swing trading, and long-term trading. While a swing trader may attempt it, a scalper or day trader has no business leaving a position open over the weekend. Keeping positions open over the weekend is better left for position traders (long-term trader) and, maybe, swing traders, because they trade on larger time frames and have bigger stop losses.
Even for a swing trader, it still could be dangerous because of the associated risks.
The Dangers of Keeping Positions over the Weekend
There are a few reasons not to keep positions over the weekend, and here are some of them:
Price gap: It is not uncommon for the market to open with a big gap from the previous close. Just one piece of news (even a rumor) is all it takes for the price to open on the next trading day with a wide gap, rendering your stop loss useless.
Stop loss hunting: Some brokers widen their spread when the market is about to close on Friday and again when the market opens on Sunday. If your stop loss is not far away enough, your position may be knocked off before the market even starts to move.
No rest of mind: When you have a position open over the weekend, and you’re not used to it (not a long-term trader), chances are that you will be worried about the trade, especially now that a single tweet can do a lot of damage.
Are There Securities That Trade Over the Weekend?
One of the biggest forex and CFD brokers, IG, offers weekend trading opportunities for some of their popular indices. These are the securities they offer for weekend trading:
- Weekend FTSE 100
- Weekend Germany 30
- Weekend Hong Kong HS50
- Weekend Wall Street
- Bitcoin Cash
Another option is to look towards the Middle East where Saturday and Sunday are official working days, so their stock markets are usually open during the weekend. Securities like DFM Index (Dubai stock index) and Tadawul Index (Saudi Arabia stock index) can be traded during this time.
Furthermore, binary options also trade over the weekend.
Futures markets are closed during the weekend, but due to differences in time zones, Asian markets open when Americans are still enjoying their Sunday. Electronic trading has made it possible to access the market from anywhere. While the market is open from Sunday to Friday, there are slight differences in trading hours for the different categories of futures contracts.
Although the market is closed, some traders keep positions over the weekend. But there are risks involved. A piece of negative news can cause price gaps which can make you incur great losses.
If you enjoyed this article you might also like our other articles answering common questions traders have!
Trading Opportunities when Markets are Closed over Weekends
Make the Most of the Weekend to Improve Your Trading
One of the greatest aspects of the FX market is that it is a true 24-hour a day market ; however, this does not extend to weekends. While there are a handful of markets to trade during the weekend, forex traders are better off using this time to educate themselves, spend time researching and manual back-testing, as well as, strategizing for the week ahead.
This article covers the following:
- Why trading is closed over the weekend
- Weekend trading opportunities
- What DailyFX traders do at the weekend
- Further reading to improve your forex trading
Why is trading closed over the weekend?
Trading the forex market is closed on the weekends because institutional forex traders and large banks (the buyers and sellers of foreign exchange) operate during working hours in the week and take time off on weekends. Most jobs operate in this manner and the forex market is no different. However, just because the forex market is offline, it doesn’t mean you have to be. The weekend presents a great opportunity for traders to learn, reflect and plan for the upcoming trading week.
When preparing for the week ahead, it is essential for traders to know when each of the major trading sessions come online, as each session has its own characteristics that need to line up with your trading strategy.
|Session||Major Market||Time (GMT)|
|US||NEW YORK||13:00 – 22:00|
|ASIAN||TOKYO||00:00 – 09:00|
|EUROPEAN||LONDON||08:00 – 17:00|
Weekend Trading Opportunities: Boost your Knowledge and Plan Your Trades
1) Explore free forex trading education
This is one of the more common ways to spend trading time over weekends when most FX brokers are closed for trading. While the markets may be closed, there is a wealth of online educational content that allows traders to access materials for weekend study.
DailyFX has a whole host of free educational material for all types of traders. Some of these include:
2) Make the Most of Your Trading Platform
Weekends are the ideal time to learn the ins and outs of a trading platform and find out how your chosen platform can assist your trading. A selection of advanced trading platforms allows traders to analyze a number of different strategies, applied to past data, for a better understanding of how these strategies would have played out. This process is called back-testing and is an excellent way of testing a strategy before employing it in live conditions.
The process of back-testing involves the selection of an earlier date and time on the chart (to a period in which you are unfamiliar with price action), ‘locking the view’ and analyzing the detailed report afterwards to gauge how well the strategy would have done.
Popular platforms with this capability include ProRealTime and MT4 charting packages. Below is an example of the back-test function on the advanced charting package, ProRealTime:
It must be mentioned that just because a strategy performed in a particular manner in the past, doesn’t mean that it will perform in that way in the future. The goal of back-testing is to simulate how a strategy would have played out and observe the variability of expected vs actual results of the strategy.
This is perfect to do when the market isn’t actually moving, allowing traders an environment to better manage the emotions of trading .
3) Strategize for the Week Ahead
One of the benefits of trading being closed is the fact that it allows traders to take a step back to evaluate the week that has just passed. This can be a phenomenal time to account for the week’s trading activities and update your trading journal .
Many traders following a trading plan may use this time to review, edit, and modify their plans based on recent observations. If you don’t yet have a trading plan, the weekend can be a great time to build one.
For traders that are already comfortable with their plan, they can look to the week ahead to focus their approach, given the expected economic data releases. The DailyFX economic calendar allows for traders to organize events based on release date, importance, and currency pair.
Example of the DailyFX Economic Calendar
The economic calendar is available 24/7, meaning traders can strategize for the week ahead even when the market is closed.
What do DailyFX Traders Do Over the Weekends?
Below are some top tips and advice from our analysts on how to be productive over the weekends:
“It’s important for traders to enjoy the weekend downtime, but it’s also important to carve out some of the quiet time for review of the prior week’s activity. Review your trade history; make notes on the good and the bad. Make sure your pending ideas are well formulated and trigger levels clearly in place in time for market open.”
“Weekends are key for FX traders, there are no prices moving and there’s no need to react. FOMO is at a minimum because there’s simply nothing to do, and this can be a good time to manually back-test or even just read a new book on a new concept, make some tweaks to the trading plan or plot the week ahead.”
“For the most part, weekends are time to step away from the charts and reset. Sunday evenings are a time for reflection and planning, studying price-action and coming up with a game-plan. I use this time to fine-tune my charts and consider the setups I want to actively track throughout the upcoming week; and have my levels and trade ideas planned out and ready to go.”
Further reading to Improve Your Forex Trading
- It’s often easier to remain calm when prices aren’t ticking, however, active traders need this calm state of mind when the market is moving. Learn how to manage the emotions of trading .
- One market that is open on the weekend is Bitcoin. However, Bitcoin has proven to be very volatile, so it’s essential for new traders to read the introduction to Bitcoin trading to understand the basics of the cryptocurrency.
- Weekends are meant for research, so why not read through our Traits of Successful Traders research to find out the number one mistake traders make
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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