It's a topic of discussion you will find on just about any Forex forum. There are many that say leaving an open trade is against forex trading principles as if it were a "cardinal rule" or "taboo". I can understand why since most brokers are closed leaving the trader powerless to close their position, BUT (more on this later). First...
I don't know about you, but I do like to sleep well on the weekends SO to some extent I do agree with this 'principle'. However, not entirely. You will not find me leaving any large positions open over a weekend, however, I find leaving a small open position over the weekend can be beneficial. One of the most common errors traders make is closing out their position when achieving a small gain and not letting it go to the predetermined take profit. So leaving an open trade over a weekend may eliminate this itchy finger syndrome. The key is to not let a big weekend move against your position wipe out a big chunk of your account.
If you do trade the weekend, you have to assume that an open weekend position has the potential to move large against you. You always have to prepare and keep in mind when setting up a trade that it can move hundreds of pips (war, bailout news, assasinations, etc - hopefully in your favor). So the key is to play it small.
Alot of traders trade the closing of the weekend broker gap (or whatever you want to call it). So, if your weekend trade is negative you can use this gap strategy to at least get back your loss or more by adding lot size to make your usual open-market size trade. If the weekend trade was in your favor, now you have the possibility to "double up". That makes a great way to start the week without taking on alot of risk, in my opinion. Now a 'gap' isn't guaranteed to close, but historically has a high percentage of doing so.
So there you have it. This is how I see weekend trading. Please share your thoughts...
Good Luck.
I don't know about you, but I do like to sleep well on the weekends SO to some extent I do agree with this 'principle'. However, not entirely. You will not find me leaving any large positions open over a weekend, however, I find leaving a small open position over the weekend can be beneficial. One of the most common errors traders make is closing out their position when achieving a small gain and not letting it go to the predetermined take profit. So leaving an open trade over a weekend may eliminate this itchy finger syndrome. The key is to not let a big weekend move against your position wipe out a big chunk of your account.
If you do trade the weekend, you have to assume that an open weekend position has the potential to move large against you. You always have to prepare and keep in mind when setting up a trade that it can move hundreds of pips (war, bailout news, assasinations, etc - hopefully in your favor). So the key is to play it small.
Alot of traders trade the closing of the weekend broker gap (or whatever you want to call it). So, if your weekend trade is negative you can use this gap strategy to at least get back your loss or more by adding lot size to make your usual open-market size trade. If the weekend trade was in your favor, now you have the possibility to "double up". That makes a great way to start the week without taking on alot of risk, in my opinion. Now a 'gap' isn't guaranteed to close, but historically has a high percentage of doing so.
So there you have it. This is how I see weekend trading. Please share your thoughts...
Good Luck.