Forex For Beginners: The Best 10 Advice For Learning How To Make Money With Online Forex Trading And Create A Passive Income Working From Home by Jordan Simon

Author:Jordan, Simon [Jordan, Simon]
Language: eng
Format: epub, pdf
Published: 2020-08-20T16:00:00+00:00

3.2 The Optimum Time to Trade Forex

Any session will begin with emotionally motivated movements triggered by political events. Also, sudden movements in the forex market that occur in Australia and Tokyo in the evening and late-night sessions may intensify later in either European or American sessions.

Numerous day traders make a habit of never taking positions overnight to avoid having to watch them in other sessions of commerce. Many traders who do keep positions overnight often tend not to trade on Sundays or at night.

Nonetheless, many momentum traders frequently take positions that they keep for more than one day. They also have rules to avoid selling during significant releases of economic data and other highly volatile periods.

Basically, as with other things in existence, when trading forex, timing is everything.

Many forex traders prefer a market with plenty of price action and where large volumes of a currency pair change hands to increase liquidity in the market.

These markets usually offer the most opportunities, especially for short-term trading strategies such as scalping or day trading.

Concerning the above, it is also fair that the forex trading periods that offer the most opportunities occur when several major forex markets are open and overlap with other large forex markets. You can see these times in here.

Another critical factor about trading hours is which of the big trading sessions would offer the best opportunity for currency pairs to make trades.

Because market conditions tend to differ between the major trading sessions for the major currency pairs, your choice of a trading period can depend on which currency pair you choose to trade-in.

Monday Afternoon:

When it comes to trade, Monday mornings can well be a time to stop, but Monday afternoons are a different thing altogether. It is because the economy is beginning to warm up, with the volume of trading growing. Once again, you can't expect the forex market to hit peak liquidity during this period, but when Monday afternoon rolls around, it's always worth taking a look at the market.

When Multiple Sessions Overlap:

London is ranked as the busiest trading session, with New York not far behind. If that is the case, you should expect the session's duration to be a busy time with plenty of trading opportunities. Many experienced traders (or at least those trading full-time) also find 14:00 GMT to be the best time to enter the market as it is the time when London is coming to close, and many are waiting for the move to New York City. Although market fluctuations during this period can be choppy and even erratic, the major swings open the door to greater profit opportunities.

Between 12:00 GMT and 07:00 GMT — while not as popular as London / New York — another difference between Sydney and Tokyo still proves to be a wise time to trade.

When the Liquidity Is High:

Markets pick up on Monday afternoons, but the forex market will not hit peak liquidity until the earliest Tuesday. In the middle of the week, the forex market is most notably active, mainly Tuesday mornings through Thursday.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.