I Have No Problems Opening a Position On Sunday

A couple of weeks ago I started a poll that asked the question, "Which is the first day of week you would consider opening a position?" I am a bit more hesitant opening a position on the first forex trading day of the week than others but if a setup meets my criteria on Sunday, I’ll pull the trigger.   It was no surprise that there were no votes for Wednesday, Thursday, or Friday.  33% voted for Sunday, 46% for Monday, and 20% for Tuesday.   I mentioned when I announced the poll that "from my experience specifically with the GBP/USD… I think the pair moves a lot less on Sunday and Monday compared to the rest of the week.  This may have to do with the fact that there are less economic news releases on these days."  

According to Babypips.com, the best days of the week to trade are Tuesday and Wednesday.  The criteria for determining the "best" is simply that these two days have the widest pip range of all of the other days.  That’s a good enough criteria for me since volatility is what I look for most in my momentum trades.  

Some user comments were:

• I don’t trade on Mondays. I normally use that day to sense the "mood of the market". Then I may consider placing a position on Tuesday or Wednesday.  Also, I try not to trade the day after any major public holidays.
• Research has shown, with regards to forex, that trading days falling between Sunday afternoon forward to Saturday evening are perilous.  (I guess this means that trading any day of the week is perilous or a grave risk)
• It does seem a slightly strange question because if a currency pair is heavily overbought or oversold, I’ll take a position regardless of what day of the week it is.  The more important point, in my opinion, is when important economic data announcements are scheduled. For example, even if there’s a potentially good position to be taken, I will hold off if an important economic data announcement is scheduled in the near future.

Determining the best day of the week or first day of the week you will open a position all depends on the currency pair, the time frame, economic announcements, and most importantly, your own personal experiences of the market.  To a new forex trader, a particular day of the week may seem no different from the others but as you watch the forex market more and more, you should be able to "sense the mood of the market."

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