February 4, 2023

Forex Solution

Learn To Trade Forex


3 min read
Why is FOREX trading more difficult on Friday?

  • Forex Trading
  • Trading Friday
  • Friday Trading
  • Friday Psychology
  • Triple Witching Hour

Why is FOREX trading is more difficult on Friday?

The main reason I do not like to trade on Friday is because it differs from all other days as it is the last day of the week. At around 5:00 pm GMT on Friday, most of the activity ends and the market goes dormant for the weekend. Why is this important? Some traders working for medium-size hedge funds have to close their positions before the end of the day. Those traders are responsible for most of the daily volatility and so unexpected moves may occur. 

Please notice that on the third Friday of every March, June, September, and December, we have what we call the “Triple witching hour”. Triple witching hour is the last hour of the stock market trading session when Stock market index futures, Stock market index options and stock options expire. As a result, anything can happen in those last 60 minutes as program traders adjust their portfolios with massive chunks of capital.

The second reason is the accumulated fatigue during the week. When your trading setup worked out well, trading is not a strenuous activity. All you have to do is to wait to enter the market at the right moment according to your method, and then wait for your trading plan to unfold. Patience is one of the most important virtues that a trader can possess.

However, when the market is going in the wrong direction, you might be forced to make quick decisions, especially if scalp trading is your primary focus. Making decisions tires your brain. The human mind has some limitations as thought processes require conscious effort. Fatigue leads to a decline in self-control, so you must be all aware that Psychology is a key factor in trading.

Beginner traders are more sensitive to the effects of fatigue, as they really have to resist the temptation to let their minds wander. On Friday, a lack of lucidity is often observed for most of the traders that will lead to a bad application of the trading method.

The last reason but not least, is related to the Trader Psychology. Friday is the last trading day of the week-end, so unconsciously we might want to make up for the loss of earnings caused by the week-end no trading period. Usually, the most addictive traders will be more sensitive to this phenomenon and might be very eager to collect pips even before we hit the trigger. So, it is essential to be patient until the next trading day comes.

Tips to improve your trading on Friday

From Monday to Friday:

  • Write a daily trading report with detailed graphics and comments
  • Physical activity: I go to the gym almost every day, especially when I am upset by the market.

From Monday to Friday:

  • Lower Your trading frequency
  • Check twice that all your criteria related to your methods are respected
  • Lower your leverage

During the week-end:

  • Spend time with your friends and your family.
  • Rest a lot, organize and clean your desk
  • Read your daily trading report of the past week on Sunday night

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