Keeping Your Trades Opened Over The Weekend

If you are thinking of keeping your traders over the weekend, you better rethink that again.

I am not for it because you never know what could happen that would affect the price with the market closed. It’s not that you have any control over price while the market is opened but at least you can see while it’s happening and how the market is reacting to it during the aftermath such as during the time when the Swiss removed their peg to the EUR on Jan 15, 2017.

I have captured some price gap of various pairs when market opened on April 24, 2017 for reference.

EURUSD gap up on April 24, 2017.

Same goes for other EUR pairs such as EURPY among others.

Now, those gap in so many pairs will also likely result in gap with other pairs such as USDJPY since EURJPY had a gap of 350pips.

Why was there a gap up in the EUR pairs and others? My guess, it’s may be related to the French presidential election on April 23.

The real answer, I don’t really know for sure and I don’t really care. News report about this currency gap or jump in percentage gain and such are all reactive news, prepared in advance.

EURJPY gap up 350.7 pips

USDJPY gap up 138.9 pips.

The point here is not what caused the gap.

What I would like to point out is that gaps can happen to any pair when market open reacting to news over the weekends. So does it really make sense to keep your trades open during the weekends when the market is closed?

Some major/minor natural or manmade event over the weekend could have cause any of that, think tsunami, earthquake, terror attack, etc.

Is It Worth Keeping Your Trades Opened Over The Weekend?

Now, if your trade was running and in the favour of the gap, the price went above your TP, then great, you gained more from this trade then expected since price closed above your TP. Congratulations!

However, what if the tables were turned and your running trade was in the opposing direction and the price gap above/below your SL?

This would result in a loss for you, greater than what you were prepared to lose because price went beyond your SL and your trade will close with a price that matches closes to your SL. I have seen accounts that got margin call and all trades closed out because of gap wiping out those accounts.

My Opinion On Keeping Trades Opened Over The Weekend

If you think you are in such a good trade and that you cannot let go of it, may I suggest that you close your trade before the end of market on Friday and re-enter the trade again after Monday morning open. That way, you save yourself a sleepless weekend if something major did happen and you wonder what is going to happen to your trade when market opens on Monday.

Good luck and safe trade.