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Weekend Trading: Facts, Myths, and Gap Phenomenon

Many traders feel skeptical about the safety of trading over the weekend, especially on Fridays. But are these concerns justified? This article will discuss weekend trading phenomena, summarize traders' perspectives, and review the frequently occurring event known as the gap.

Myths and Realities Behind Weekend Trading

In the world of trading, there are various views regarding trading on Fridays. Some traders believe that trading on this day carries high risks, especially nearing the market close. The main reason is that Fridays are often seen as the last chance to meet weekly targets, leading some traders to make aggressive decisions.

However, another perspective states that there are no specific prohibitions on trading over the weekend. For those using supportive trading systems, opening positions on Fridays is not an issue. In fact, some traders do not see any difference between Fridays and other days, as long as their trading systems support position openings.

Traders' Approaches to Weekend Trading

When asked, traders have various approaches to weekend trading. Some of these include:

  1. Cautious Approach: Some traders argue that trading on Fridays, especially nearing the market close, requires caution. They tend to close positions before the market closes to avoid potential unexpected price movements.
  2. Neutral Approach: Some traders do not see significant differences between Fridays and other days. They continue to open positions according to their trading systems without considering the day of the week.
  3. Bold Approach: Some traders seek trading opportunities over the weekend, especially by placing pending orders nearing the market close. They see the profit potential from the frequently occurring gap phenomenon at the beginning of the week.

Weekend Phenomenon: Gap

The gap is a phenomenon that often occurs at the beginning of the week, especially after the market closes on Fridays. A gap is a significant difference between the weekend's closing price and the opening price of the following week. The causes of gaps can stem from various economic, political, or significant events that occur during the market closure.

Some traders choose to avoid gaps by closing positions before the weekend, while others see them as opportunities. Those who leave positions open over the weekend often protect themselves with Stop Loss or hedging strategies.

Weekend trading does not need to be considered taboo. Every trader has a different approach to trading on Fridays, depending on their strategies and risk tolerances. It is important to be aware of potential gaps and choose an approach that aligns with individual trading goals and styles. With a good understanding, traders can seize opportunities and manage risks more effectively. 


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