Weekend day trading is a growing financial sector. Weekend forex trading hours have extended beyond the traditional business week. With no central market, currency rates can be traded whenever any of the global markets are active – be it London, New York, Hong Kong or Sydney. For the same reasons, Bitcoin, and other cryptocurrencies, can also be traded over the weekend. Some brokerages now also offer weekend trading on indices as the growth in intraday part-time trading continues. Here we detail some markets for weekend trading, strategy options, and some benefits and risks to consider.

 

 

Can you trade on weekends?

There is a common misconception that you cannot trade on weekends. Perhaps this is because understandably, many people in the financial world want their precious Saturday and Sunday off. Nasdaq weekend trading and trading in India, plus US stock exchanges are all out of cards from 16:00 on Friday, to 09:30 am on Monday.

However, technology has been the catalyst for globalization, and not everyone in the world works on the same schedule. The Middle East’s trading hours, for example, work from Sunday to Thursday and, in some places, Saturday to Wednesday.

So the answer is yes, you can definitely start trading online at the end of the week. In fact, weekend trading in binary options, currencies, stocks, CFDs and futures is growing rapidly.

Some of the most popular indexes available over the weekend are:

  • DFM Index  – This index is based on the Dubai Stock Exchange, one of the major exchanges in the United Arab Emirates.
  • Kuwait Stock Exchange – This is the national stock exchange in Kuwait and includes the largest companies, banks, insurance companies and real estate.
  • Tadawul  Index- This is the only stock exchange located in Saudi Arabia.
  • Tel Aviv 25 Index – This includes the top 25 companies by market capitalization in the Tel Aviv Exchange, Israel.

In addition to the above, some brokers now also offer weekend trading on European and US indices including FTSE, DAX and even Wall Street. Always make sure you read the terms of weekend trading, especially if using a stop loss order. For example, at IG, the stop loss for the week will not be activated at the end of the week. At the same time, trades made on weekends can be opened during the official market opening hours. These conditions can play an important part in your strategy, so make sure you understand them. As more brokers start offering weekend trading, the difference between how they operate will increase.

Why trade on weekends?

So while the weekend trading market is available, it’s a whole different question of whether or not you should get into it. Here are some reasons why you might want to:

  • Friendly Strategies – While some strategies will give high returns during a high volume week, others will perform better at the end of the week. Open Asian markets, for example, behave differently from many
  • Western markets. This plays into the role of certain traders with strategies that are better suited to different market conditions.
  • Trade more = more profit – while this is not always the case, in general, the more time you spend trading, the more opportunities you have to turn a profit. If it was a choice between housework and generating revenue, many would choose the latter.
  • Flexibility – For some people, week trading is simply not an option. Weekends are ideal for people with busy schedules and commitments during the week. You have the freedom to choose the hours that work for you.
  • Focus – If your week is busy, weekends can have fewer distractions. This can translate into greater focus and enhanced trading decisions.

Limit transactions on the weekend

Despite the many benefits of weekend trading, there are still some limitations. The most problems are listed below.

  • Limited Instruments – Few assets available on weekends. If you prefer to trade using the news and with tools that you understand well, you may run into problems. For example, Nokia, Ford Motors and Twitter are all traded on the New York Stock Exchange and off-limits on weekends. However, those who trade on price movements using technical analysis can still turn a profit.
  • Low Volume – Forex weekend trading hours span both Saturday and Sunday. When London closed its stores, Hong Kong was still going strong. At the end of the week, the gold and oil trading markets are very similar. The problem is, at some point the trading volume will be extremely low. This results in flat markets and unhelpful charts.
  • Timezone – This limitation is pretty self-explanatory. Your body clock may not look favorable during weekend trading. For example, stock exchanges in the Middle East operate at less friendly hours if you are based in the UK or US. If you don’t want to wake up in the middle of the night, you might want to think twice.
  • Brokerage Hours – Many brokers assume that there aren’t enough clients to warrant opening on weekends. This means you will need to check the broker’s trading times. If they’re not open, you’ll need to go elsewhere. 24option, Metatrader, Scottrade, Etrade and FXCM all offer weekend trading platforms, as do IG and Nadex.
  • Risk of Volatility – While volatility also promises traders many opportunities to profit, it also comes with risks. Because normal market participants are inactive, there is often a large difference between the bid and purchase price of the stock. This resulted in some traders being scammed.

Do weekend effective trading strategies?

Yes, they do. Since major market players spend their profits on the weekend, markets on Saturday and Sunday can behave in exceptional ways. You will find increased volatility and varying volumes.

All of this means that you need to tailor your strategy to the new market conditions. Also, you may want a unique weekend trading strategy.

Here are a few strategies that have been carefully designed for weekend trading.

 

Closing Gap – Gap . Trading Strategy

The market conditions are ideal for weekend arbitrage and options trading. The gap is simply the price jump. At some point, something changed the market, resulting in a price jumping to a higher or lower high, while excluding the price in between.

First, what causes the gap? Any number of things can be the cause, from new movements to accelerated movements. One thing they claim though is substantial volume. Because the weekend sees big players out of the game, you’ll struggle to find these gaps. Instead, you will find closed gaps.

Closed gaps can be created by only a few traders. For whatever reason, several people invest in the same direction. The market then spiked and everyone else was scratching their heads. So what are they supposed to do? They think it must be a mistake and trade in the opposite direction, looking to profit from the error.

  • Gap upwards – Traders will sell their assets. The markets will then fall and the gap will close.
  • Distance goes down – Trader will buy the asset. The market will then rise and the gap will close.

If you see gaps in a low volume market like at the end of the week, there is a high chance they will close.

Application

Because you know the gap will close, you have all the information you need to make a profit. You know:

  • Price Target – The market will move up until the price reaches the level of the first candle that makes up the gap. With gaps down, it will rise to the low of your previous candle. With gaps up, it should fall to the high of your original candle.
  • Expiration – You know the market will reach the target price in the next period. So you can trade a high/low option. Alternatively, you can trade one-touch options, which can bring you bigger payouts. Make sure you invest in an option with a price target inside the gap and expiration shorter than a period of time.

This strategy is very simple and can be applied to currencies and commodities. All you need is your weekend trading chart and you are good to go. You can even pursue weekend gap trading with expert advisors (EAs).

Bollinger Bands

This is an effective strategy to add to your weekend arsenal. The Bollinger Bands highlight a price channel that the market should not leave. You will find that at the end of the week this price channel can be extremely accurate. This makes it the ideal foundation for your weekend strategy.

The band consists of three lines:

  • Upper line – Moving average plus twice the standard deviation. This acts as a resistance.
  • Bottom Line – Moving average minus two standard deviations. This acts as a support.
  • Midline – 20 period moving average. This can be support or resistance, depending on whether the market is trading above or below it.

In general, you will see the market turn around when approaching your Bollinger Bands.

Weekend use

These bands usually bring the best results on the weekends. This is because during the week news events and major traders can initiate new movements, so the trading range is more variable. As the standard variation changes, so do the upper and lower Bollinger Bands. Strong movements will lengthen the bands and carry the boundaries with the trend. This can render the prediction useless.

However, the volume drop at the end of the week makes the market more stable. It is unlikely that a large number of traders will jump into a movement and disrupt the status quo.

Application

You need to follow only three steps to implement your new strategy.

  1. Build your chart –  Decid on an instrument and then set up your price chart with Bollinger Bands.
  2. Be patient –  Now you can sit back and wait for the market to reach your bands. You need to be patient until the market is within one of the three lines of the Bollinger Bands.
  3. Make your prediction –  Now is the time to enter your position that the market will turn. For example, you can use the high/low option to predict that the market will not breach the bollinger bands.

Because it is so simple to apply, it is ideal for both experienced traders and beginners.

 

 

Alternative choice

If you don’t want to spend the weekend trading bitcoin or the stock market, there are other ways you can be productive. The weekend is an opportunity to analyze past performance and prepare for the coming week.

Here are some worthwhile efforts to explore over the weekend.

Education

As Paul Tudor Jones aptly emphasized, The secret to success from a trading perspective is to have an insatiable hunger and thirst for information and knowledge. While practice makes perfect, you need to absorb as much information as possible. So consider spending the weekends pursuing the following:

  • Courses – There are many online courses that will help you master complex strategies, taught by veteran traders.
  • Books – You will find a wide range of books and ebooks that provide invaluable advice and guidance. If you’re looking for some of the top rated, check out our book page .
  • Podcast – If you’re busy on the weekend, or on a long trip to the law, why not book a podcast? You’ll find property-specific sound systems written and recorded by professionals. Just one helpful tip can make the difference between a financial strategy and a profitable strategy.

Manual recheck

There is no better way to predict how the market will behave in the future than looking to the past. You can use those lazy Sunday hours to simulate past market environments to test potential strategies.

While it must be said that past performance is no guarantee of future performance, it can be a powerful indicator. Not to mention you can work out any creases so your plans are ready to go when you go online at 09:30 a.m. Monday.

Evaluate

When the market is open, you can often get caught up in a whirlwind of emotions and trading activity. Weekends are great for giving you a chance to take a step back. You can look back and highlight any mistakes.

This will help you make a more effective trading plan next week. Perhaps you may need to adjust your risk management strategy. Maybe it’s time to try another breakout strategy this week. So if you’re not interested in weekend stock trading, sit down and identify areas for improvement.

Planning

The weekend also gives you the opportunity to investigate any upcoming events that may affect your markets. For example, the DailyFX Economic Calendar allows you to identify important economic dates, such as policy reforms. You can then adjust your action plan to account for upcoming events that will affect market conditions.

Last word

For the trader switching on the weekend is just another opportunity to make a profit. While some of the major traders are out of town, you can find volatility in markets across the globe to take advantage of. While many brokers and exchanges are close, there is always some activity, especially in the Middle East. If you want to trade, remember to tailor your strategy to different market conditions. Alternatively, opt for one of the specific weekend strategies above.

If you want to escape the bustle of actual trading, you can still prepare for next week. You can use any of the educational resources listed above, or you can start checking back and strategizing for Monday.