Holidays are usually a time for celebration, but not when it comes to Forex trading. Holidays are dangerous because of reduced trading volume. Big bank traders that work on huge trading floors make up over 80% of the Forex market, and when they stay home and aren’t trading it can cause the market to do some weird, unpredictable stuff. Never trade on a major holiday!
Other days that are off-limits are weekends and Friday after 12:00 GMT. Weekends are usually not a problem, since most online brokers won’t even let you trade on weekends, but you should skip Friday afternoon as well. Those big bank traders like to close out their profitable trades on Friday afternoon, and that makes the market unpredictable since trades are being closed outside of the normal supply/demand cycle.
Now that you know when not to trade it’s time to learn how to actually place trades, including planning your trades, setting stoplosses and profit targets.