One of the most popular questions which have been associated with the stock market is the best time to invest in transactions of the financial world. Most of the resources which have been seen from the top Google searches have said that the highest volatility in the market can determine the best time for trade. Since most of the resources have suggested this particular outcome, there is some basic truth in it.
The popular notion about investment
Most of the trading experts have decided to understand through research methodology whether the highest number of successful orders is gained within the periods of most volatility or not. Liquidity in the market can also account for some of the best trades in the field.
More than 2000 successful traders have been interviewed in order to find out whether this particular assumption is true or not. It has been found out that the most successful traders of the financial market have already performed profitable transactions when the market was moderately volatile.
Busting the myth of investment time
This information turned out to be a myth-buster that the periods of highest volatility are the most profitable ones. The liquidity of stocks can also lead to profitable transactions but this is not a mandatory factor. The best time for trading cannot be measured according to the hour or day of the stock market.
The research which has been conducted has suggested that the previously known information about a volatile market is considerably inaccurate. However, there should be a measure by which the success rate of a market can be tallied with time. It is a better opportunity for the traders to look through this strategy from a modern perspective.
A true analysis
The information which has been gathered from the open sources has proved that periods of higher liquidity and volatile market status usually appeared on Thursdays and Fridays. The financial experts and information bottles who have dedicated their entire time to learn to trade on Forex have helped to reach this particular conclusion. These two days are considered to be one of the most profitable periods for trading. Since the market is more volatile during this period, a greater number of brokers can be availed for better trading pairs. Special time periods have been found individually for each nation that can prove to be profitable for Forex trading.
The periods of trading sessions which have overlapped between different types of traders can increase the trading volumes. Since there are lesser chances of slippage, the numbers of orders executed are high and the spreads on currency pairs are comparatively low. Therefore the most volatile days are based on increased liquidity of the market
The process data showed the best time to trade Forex are Thursdays and Fridays of the week because of price fluctuation and liquidity standpoints. Tuesdays and Wednesdays are most stable for the traders who want to take safe bets. The economic importance of Mondays lies specifically on the statistics released for that particular day. Sometimes the values might increase or decrease despite the time of the week.