Trading Binary Options on Fridays

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Trading Binary Options on Fridays

Recently I’ve been asked by one of my readers why I don’t trade binary options actively on Fridays. I guess I must have mentioned this in one of my reviews your articles in the past but it is true. I rarely do ever trade binary options on Fridays. There is quite a few reasons why that is, and today I’ll be going through a list of these reasons so that you understand my point of view, and can decide if you want to follow in my footsteps.

Binary Options Trading on Fridays

I don’t know if it’s exhaustion, or just the changes in the marketplace that frequently occur on Fridays, but it’s very common for traders, including myself, to lose a lot of the bank roll that’s been built over the week. Maybe it’s because the market closes at 4PM NYT, so the trading day is compacted, or maybe it’s because the majority of traders are closing their trades to ensure they don’t carry open positions into the weekend.

No matter what it is, trading binary options on Fridays has always been a bit of the arch nemesis for me.

So why not, take the day off and listen to an episode of the podcast ?

Over-Trading

The concept of over trading in binary options or any other market is highly contested. There are many people that believe there is no such thing, and that you can trade as much as you want whenever you want. I have to be honest here, I’m on the other end of the spectrum when it comes to this argument. I believe that when Friday rolls around, many of us are emotionally exhausted from the ups and the downs of the trading week. Even on Thursday nights I start to feel a bit of a fatigue, and need a bit of a break from the computer monitors.

When trading binary options on a Friday, do yourself a favor and listen to your body. While many will argue that binary options trading is purely mental, I find that there are physical cues that can help me understand my focus and concentration level. I noticed that my eyes get tired, and my ass gets stiff. If either of those 2 things are happening, I don’t care what day it is I stop trading immediately.

When I first started trading, I was so enthusiastic, that I would push through and trade marathons. Sometimes I would trade for 10 to 12 hours in a row. Now, when I look back at those trading days I can see a very specific pattern where the majority of the profit that I created during the first 6 hours of the day was lost in the last 6 hours a day. So, it’s very important to understand your threshold for focus and concentration when your trading binary options, especially on Fridays when you should be taking a step away, collecting your profits and looking back at the week that was.

What Can You Do On Fridays?

One of the things that I do on Fridays, that I recommend to all the binary today readers, is take account for the week that was. Look back at what you’ve accomplished throughout the trading week, and create a plan of attack for the next week. So, while you aren’t trading necessarily, you can still analyze past trades, educate yourself and see where you went wrong and where you went right.

Also, you can put a couple ice cubes in a glass and fill it with your favorite drink. I know that’s what I’m going to be doing today.

Thanks for stopping by and please let me know if you’re one of the binary options traders that likes trading on Fridays, and why.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

Trading Sessions and How They Affect Binary Options Trading

One great thing about trading binary options is that you have access to a wide range of assets. Some financial instruments are traded only during certain times of the day, while others are traded 24 hours a day. Markets do take weekends and holidays off, but for the most part, if you really want to trade at any given time, you can. Here are the market hours for the different types of assets you can trade with binary options:

Stocks

In general, the US stock markets determine the trading hours for stocks. Stocks are one of those assets which are not usually traded 24 hours a day. The US stock markets tend to open for trading at 9:30 am EST and close for trading at 4 pm EST. Even a lot of foreign stocks are traded on the US stock exchange. There are some exchanges in the US like NYSE Arca which are open during different hours (4:00 am to 9:30 am EST and 4:00 pm to 8:00 pm EST). These markets are open Monday through Friday, and are closed on Saturdays and Sundays.

Some European stock markets are also highly relevant to binary options traders, though, like the FTSE, which opens at 7 am GMT and closes at 3:30 pm GMT. Another one to keep an eye on is the Xetra Dax, which opens at 8 am GMT and closes at 4:30 pm GMT.

Indices

Indices of stocks measure the movements of actual exchanges, which means that the market hours that govern stock exchanges like those listed above likewise govern index trading. Look up the hours of the stock exchange in question to find out when you can trade the associated index. Indices, like stocks, generally cannot be traded 24 hours a day.

Currencies

Currency trading is a global activity, which means that Forex markets are open 24 hours a day as various sessions open and close, including the Sydney, Tokyo, London, and New York sessions. Here are the summer hours (remember to account for daylight savings time and standard time throughout the year):

  • Sydney: 10:00 PM – 7:00 AM GMT
  • Tokyo: 11:00 PM – 8:00 AM GMT
  • London: 7:00 AM – 4:00 PM GMT
  • New York: 12:00 PM – 9:00 PM GMT

As you can see, there is an overlap in the market hours. The busiest times of day are those when the sessions overlap. This is usually the time with the largest price movements. The European sessions is the most active of the lot, so many traders who deal in currencies like to schedule their trading hours for the European session or the overlaps. This can be inconvenient if you are on the wrong side of the planet, but you can use trade alerts to trade overnight. Also note that the currency markets do close over the weekends, usually from Friday afternoon until Sunday afternoon on most platforms.

Commodities

Here are the most active hours for common futures:

  • Crude Oil: 9:00 am – 2:30 pm EST
  • Natural Gas: 9:30 am – 5:15 pm EST
  • Corn: 9:30 – 1:15 pm EST
  • Gold: 8:20 am to 5:15 pm EST
  • Silver: 8:25 am to 5:15 pm EST

The best times to trade any of these financial instruments is when the markets are active and in full swing. What are the worst times? Avoid trading over weekends or entering into trades on Friday afternoons and waiting for the market to open again on Sunday or Monday. There is usually some chop coming out of a weekend, and it is an easy way to lose a trade. Also steer clear of holidays when markets are closed. You will also want to be aware of financial reports and other major events which can cause volatility in the markets. Some traders make money trading these events, while others do best to avoid them completely. Binary options trading has many benefits to offer traders, and the ability to deal in all these different assets makes it easy to schedule your trading!

Trading Binary Options: When is the Best Day to do it?

When you trade binary options, a full understanding on specific days is essential. Yes, you might think that all the days are the same, but there are days that are not so good and not so bad. Anyone who has a life knows that this is true. In binary options, what is considered as a great trading day is when you get that signal. It does not matter what your trading style is because there is not a day that is precise for trading unless you have a great strategy that can generate signals every single day. However, these may be plausible assumptions, but there is that day when traders can best enter the market.

You might have learned over time that one day is as different as another and one trader is also as different as the other. Now, when we talks about commodities market, forex, bonds, and equity stocks, Mondays can be the best day to trade because this is the entry and exit day of retail traders as a whole. These traders go home during Fridays and do their routines including monitoring trading accounts and deciding which stocks they have to sell because of misses in earnings. Thereby, Monday can be considered a volatile trading day, and it can be a day that can be against long term trends. Moreover, Monday is a good day for binary options trading just when the market opens its doors.

OTHER DAYS FOR TRADING

Tuesday – Just like Monday this can also be an equally volatile day for trading. This is the day when last minute orders are files. This means that many carryovers are done on Tuesday. Additionally, when there was a severe trading on Monday, then there can be a snap on this day. Most of the time, Tuesday is a great day for binary trading unless there are some unfortunate economic events. Such events can be reasons for you not to trade and move away from the market.

Wednesday – This is typically “the calm day.” There is already a mellowing down of market shaking from Monday and/or Tuesday. At this point, trading is at calm pace. This is a good day for binary traders to go into long term positions. Just like other days, Wednesday is also affected by events and news. However, what is unique about it is that most big announcements that can ignite huge asset price movements such as housing data and ADP growth are done on this day.

Thursday – This can be your favorite trading day. If you are an eager trader or you are trying to confine movements ignited by economic dealings, then you have a huge chance to enter the market. This is actually the day when big-time money managers as well as investors buy and sell. If you want to enter trades which follow on long term trends with short term expiries, then this is the day for you.

Friday – yes, Friday is also another great day to trade as this day is the perfect indicator for long or short term trends. This is obviously the end of the trading week which means that if you need some catching up to do with your trades then now is the time. Fund managers, professional traders, and some investors don’t actually trade a lot on Fridays because they have already observed another trader’s activities and have already heard the news. Therefore, when you decide to trade on Friday, make sure you know what has happened from Monday to Thursday because they can greatly affect your risky Friday trades. Economic events that move the market are often the vehicles of trades on Fridays.

FINALE

It seems like all days are ideal days for trading. SO when exactly is the best day to trade? As mentioned before, the best day to trade is when there is a great signal. This means that you will not have a good trading day if you do not have a good binary options trading strategy with you. You also need to learn how to keep up with charts and always be patient. When you wait for the right signal then you can trade with success.

Best Binary Options Brokers: 2020 Ranking
  • Binarium
    Binarium

    Best Choice! The leader in our ranking!
    Perfect for beginners!
    Free Demo Acc + Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

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