A look into what days of the week are best for trading binary options. Find out which days you want to trade in order to have the most success. Is there one day of the week that is better than another for you to trade binary options?
Of course there is but you may not like my answer. The simple and most direct thing for me to say is that the best day to trade is the day that you get the signal. Now that I got that out into the open lets take a different approach to answer the question at hand. Which day is best for binary options traders to enter the market. Over time I have learned the reality of what many books had already told me. Not all days are the same because not all traders are the same.
Now, speaking of the equity stock, bond, forex and commodities markets Mondays are a day that retail traders enter and exit the market en masse. This is because they go home on Friday, read the papers, look at their trading accounts and decide that they need to sell stock XYZ because of an earnings miss or buy into a long position on corn because next years harvest is going to suck.
This can make Monday a volatile day of trading and one that can often go against the longer term market trends. It is also a great day for trading binary options. I enter most of my trades on Monday morning, just after the market opens. Tuesday can sometimes be a day of volatility. At the same time if Monday trading was extraordinarily severe there could be a snap back on Tuesday. Tuesday can often be a good day for trading binary. Unless of course there is an economic announcement.
Tuesday is usually the first day of the week that can be impacted by an economic event. Sometimes these events can be a reason to stay out of the market, or at least to wait or adjust your strategy. Sometimes they can be a good reason to get in.
Wednesday things usually calm down. Wednesday can be a good day for binary traders to enter longer term positions. Of course, Wednesday is often affected by news and events, same as Tuesday.
Wednesday is a popular day for some of the biggest announcements including ADP job growth figures, housing data and many others that can spark large moves in asset prices.
Thursday is my favorite day to trade. By Thursday any lingering affects of the retail trader are long past. Eager day traders and those trying to capture movement sparked by economic events have also had their chance to get in.
Thursday is the day that historically, the big money managers and institutional investors do their buying and selling. Many times I have made a trade on Thursday thinking it would take a week or more to bear fruit only to have the markets make my anticipated move the very next day.
Friday is another great day to trade. Friday can also be an indicator of short and long term trends. Friday is the end of the week, the last day of trading before the weekend warriors begin to prepare their trades for Monday morning. Friday can be volatile like any other day, so you still need caution when trading. So, what is the best day to trade? I say again, the day you get the good signal. The longer the time frame of your chart the less frequently a signal will appear.
Think about it, if a signal requires 2, 3 or 4 bars to complete a chart of weekly prices will take a month to produce a signal. On a chart of daily prices the same signal will only take a few days to complete but will also have a shorter duration and therefore a shorter expiry.
My best advice is to learn to use a couple of different strategies, keep up with your charts and be patient. Wait for the signal because that is the best day to trade.
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