Why is it often said that it is better not to trade FX on Mondays? We will explain the movements and points to note in the market and market prices. This is because Monday itself is the start of the week and is also the day when trading begins. The reality is that there are many traders who cannot find a rhythm in the charts.
Difficult market on Monday?
It is said that the market is very difficult on Mondays. Why is this? There are the following reasons. If you want to make a big profit, analyze and understand the market situation before doing so. Check your position at the beginning of the week, the timing of the announcement of economic indicators, and also the trading rules of the FX company. The market can be greatly affected by even small things, making it easy to incur losses. When starting, decide on a good time to do so. Before starting, check the information and pay attention to market fluctuations. Consider whether you will be able to settle and make a profit.
low trading volume
In fact, the foreign exchange market on Mondays tends to have less trading volume overall. This trend is particularly noticeable during Tokyo hours. Because of this, unexpected trends can occur, especially on Monday mornings, which can result in huge losses. If there is important economic news, there is a possibility of large price movements immediately after the market opens on Monday. Low trading volume means trends are more likely to emerge. As a basic rule, investment services require you to understand the trends before placing an order. Japanese currency pairs tend to move more easily around Christmas and other times when the market is closed.
The weekend changes the tide
The foreign exchange market is not only influenced by economic indicators. Political events can suddenly change the trend. It is common for a beautiful downtrend on Friday to suddenly turn into an uptrend on Monday. Moreover, there is currently a war between Russia and Ukraine, and there is a possibility that China will invade further. News can also occur on weekends. In order to avoid failure in foreign exchange, investors need to understand the trends early in the morning. Rates and the trends of each market can also change during holidays. The situation varies depending on the foreign exchange market.
I can’t catch the rhythm
From a trader’s perspective, the market will not necessarily continue the same trend as on Friday. Because of the above, it is common for the market to suddenly change on Monday. This can make it difficult to get into a rhythm and often results in a lot of stop losses. Brokers also offer tools for technical analysis, so find a time on weekdays when you can earn a steady income 24 hours a day. Be careful with your capital and avoid risk. Market participants need to be very vigilant depending on the environment and content. There is also a risk of losing assets during the day when the market is open.
Volatility can be high
Liquidity can suddenly increase and volatility can rise. It can also be affected by political and other events. Check each candlestick as it moves and study it. For reference, the Tokyo market does not have many price movements, so it is a good place to practice and has the advantage. Establish a style and increase your win rate. You only need to fight in markets where you can win. In stocks and the dollar/yen exchange rate, there are many cases where the start time, Japan time, moves earlier than expected. Make a prediction and wait for an opportunity.
When is the best time to trade?
On Monday morning, there will be window opening and window filling. Because of that, there will be many unexpected movements. And in most cases, it’s in the microwave until European time starts. Therefore, if you want to compete, we recommend the London market or later. If there’s a trick, it’s from here. Asian time is basically just a microwave and it often doesn’t work. The opposite is true for American indicators, which have a strong impact on any financial service. It tends to be a trend no matter what day of the week it is.
It’s important to wait
As explained above, the flow may change on Monday, so if you are worried, consider waiting. You may want to trade after the trend becomes clear. It would be better not to do something wrong and end up in trouble. Many traders don’t trade on Mondays because they can’t predict what will happen next. Arm yourself with knowledge so you can judge the situation. London, New York time and American employment statistics are actively traded on the exchange market.
Attraction is important
The key point when starting is to compete with the chart shape and price that can utilize your best technique. You can trade until it is closed. Customers can freely aim for strategies until the contract is made, whether it is dollars or euros. Although there are differences in summer and winter time, you can access the system and trade immediately if the exchange rate is within the period. Do it normally for small amounts to avoid risk. The market price differs every month, such as the New York market and summer time, but you should compete in your best condition. Don’t rush and get results without forcing yourself in important foreign exchange situations.
Read the flow before doing it
The flow may change on Monday. At the beginner’s level, it is dangerous to do automatic trading on an individual basis. These things should be avoided, and you should understand and hone your ability to read the market and the mechanism. The direction may change quickly due to policies such as interest rates. When it comes to foreign currency, you should choose a stock based on a relative judgment, not just dollar/yen. It is recommended to trade after checking the indicator information on the calendar. Be careful if you are a new foreign exchange margin trader. Please note that some services may be suspended during the New Year holidays.
Principal is not guaranteed
As a trader, you know, principal is not guaranteed, so be careful. Even if you participate thinking that the value will rise slightly, it often goes almost the opposite direction. If your losses are going to increase significantly, make sure to set a stop loss. The market opens at 6 a.m. Japan time, and a large number of Japanese people enter the market from around 9 a.m., so the market will move strangely. In order to avoid a disadvantageous battle, use the function to set an appropriate stop loss.
XM is recommended
XM was originally known as a FX company with too wide spreads. But this was only recently. Now, an account type called KIWAMI account has appeared. The spread is very narrow, making it very suitable for trading. Therefore, this account type is highly recommended. It is especially recommended for those who trade in pounds, as the spread is extremely narrow. We also offer campaigns and demo accounts so you can take advantage of maximum content.
| KIWAMI | Standard | Zero | |
| USDJPY | 0.7pips | 1.6pips | 1.1pips |
| EURUSD | 0.7pips | 1.7pips | 1.1pips |
| GBPUSD | 0.7pips | 2.1pips | 1.2pips |
| AUDUSD | 0.9pips | 1.8pips | 1.4pips |
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