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Usually the financial markets operate 8 hours a day. Especially for the Forex market You will feel that this market is open 24 hours as there are more than 3 open trading sessions (8 hours each) worldwide.
In addition to being open 8 hours a day on weekends and public holidays These markets are also closed. However, this does not mean that you cannot trade. Some brokerage firms offer weekend trading facilities. Also known as trading positions open on Saturday and Sunday.
What is weekend trading and what are its advantages? Check out the following discussion.
Understand weekend trading
Weekend trading is the activity of buying and selling financial instruments such as forex and cryptocurrencies. which operates on Saturday and Sunday
Saturdays and Sundays are usually closed for financial markets around the world. As a result, traders have to wait for the next Monday to open trading positions.
However, along with technological developments Traders can know which sectors of the financial markets. of a world with conflicting moments So they can open trading positions on weekends or faster than ever.
Due to stock exchanges and many companies closed during the two days. So there isn’t much economic, business or financial news to explode and affect market prices over the weekend. so the weekend day trade have special characteristics and strategies
Assets that can be traded on weekends
The most commonly traded instruments during these two holidays are forex, cryptocurrencies. and the following stock indices:
- DFM Index – Index on the Dubai Stock Exchange One of the largest stock exchanges in the Middle East.
- Kuwait Stock Exchange – The Kuwait Stock Exchange is the country’s stock exchange. in this exchange The shares of companies operating in the countries that produce this oil are traded.
- Tadawul Index – Stock Exchange in Saudi Arabia
- Tel Aviv 25 Index – This is an index of 25 companies with the largest market capitalization on the Tel Aviv Exchange, Israel.
Advantages of weekend trading
1. Flexible
The main advantage of weekend trading is more flexibility. Especially for traders who still work from Monday to Friday. Weekend trading allows traders to focus on analyzing the market and making more rational decisions.
Therefore, trading on Saturday and Sunday is suitable for Swing style traders and trading positions because they have more time for fundamental analysis and will not be distracted by the price movements on the screen.
2. Hedging
Many brokerage firms offer weekend trading properties. hedging or hedge This facility is used to protect assets held (hodl) by traders when the market closes on Friday afternoon. In order not to fall too much when the new price opens on Monday morning.
For example, you bought USDIDR on Friday afternoon and decided to hold it until next week. But in fact, in the news on Saturday that the transaction between Indonesia and the United States has ended with trading this weekend You can choose the hedging feature as soon as the news is released. so any changes With rupiah and dollar on Monday morning will not bother you.
Disadvantages of weekend trading
1. Low volatility
Weekend trading volatility and liquidity are often lower than on normal days. This is due to many reasons such as lack of economic and business news. Not many brokers offer this facility. And a small number of traders open trading positions on Saturday and Sunday.
Therefore, weekend trading is not suitable for traders who have scalping style or day trading, as both of these trading styles are highly dependent on the price volatility and market liquidity of the respective instruments.
2. It tends to fluctuate when the trading session opens on Monday morning.
Most new traders open or close their positions on Monday morning and other business days, so if you open a position early on Saturday and Sunday, you will be able to open or close their positions. The instrument you are buying or selling is more susceptible to unexpected price fluctuations.
3. Bigger spreads
Brokers usually charge spreads based on the liquidity of the asset. The more liquid assets The lower the spread a trader has to pay, on the other hand, if the market is quiet or has low liquidity. The cost of the spread will increase. Because the market is quiet during the weekends. One of the disadvantages of weekend trading is the spread over the normal day.
4. Limited assets
There are quite a few brokers that offer trading facilities on Saturday and Sunday. This is especially true of US and European brokers, although there are usually limited assets offered. As a result, you cannot trade multiple assets at once and have to wait until Monday morning.
weekend trading hours
- Saturday 2pm to Sunday 4.40pm (WIB) for index
- Saturday 2pm to Sunday 2.40pm (WIB) for European and US currency trading.
- Saturday 2pm to 4am (WIB) for cryptocurrencies.
Follow Rizki Aditama in the video below. Trading doesn’t have to be done 24 hours a day.
Secrets of weekend trading success
1. Use Bollinger Bands
The first trick is to use Bollinger bands. Bollinger bands are technical indicators that use moving averages and standard deviations to predict price movements.
By using this indicator in weekend trading You will know how the movements of the big players and the news can change the standard deviation of the components of this indicator, so you can formulate the most accurate and precise trading strategy.
2. Doing backtesting manually
Spend a lot of time this holiday developing and evaluating strategies. To develop a strategy, you can use the Bollinger bands above while to test your strategy. You can do it yourself. retrospectiveThe goal is to let you know if the strategy you are developing is working or not. and if it doesn’t work what can be improved
3. Use weekends to study.
In addition to testing You can still take advantage of this holiday to continue learning to trade. Whether reading a trading book attending seminars, etc., because successful traders are traders who want to keep learning.
Saturdays and Sundays can be valuable times for you and your family and yourself. But you also need proper time management. set trading schedule Make sure your mood is stable and disciplined. Then get results
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