APlus Article Directory

I would like to touch such an important issue as time of trading in Forex market. If you think that a successful trader is one who sits in front of the computer day and night making short brakes for food and sleep, then you are mistaken. Another option is to use Expert advisor

If you get exhausted of watching your charts and always feel sleepy chances are you are losing money in Forex. Profitable traders do not waste their time at charts trying to catch a price move when there is no volatility in the market.

No one became rich by trading in an exhausted state. Clear mind and alert state are necessary for making right trading decisions. Then when we should be trading and when taking the rest?

I would like to share my experience and hopefully it will help you to avoid unnecessary tiredness and headaches. I just want to note that the hours I mention here are in US Eastern Time (GMT -5), so make adjustments accordingly.

Asian Trading Session

Evening and late night 5 pm – 11 pm (EST) is when Asian market is open. Financial institutions of Japan, China and Australia are active.

Volatility of the market is not very high at this time period. Biggest European and American financial institutions are closed. Therefore the volume is not very high. There is very little price movement. However some important news from Japan can disturb the market and create volatility.

The only profitable strategy that can work in such market is scalping. However I wouldn’t recommend to anyone to scalp Forex. It seems less risky but it takes more effort with very little return. In case you have any open order running into Asian session I would recommend to make sure the stop loss is set. Then just close your charts and go and take a brake from trading.

The late hours of the Foex market from 11 pm until around 1 am often can be very slow with very little volatility. It is the time when the trading day ends in Asia. Therefore it can be really hard to find a good opportunity during this time period. However if you need to trade during this time you still can chose a more volatile pair like GBP/JPY or EUR/JPY.

Trading During European Session

Time period from 1 am to 4:30 am one of the most important trading times in Forex. European financial institutions and traders are fully active. Usually this time period can set the trend for the rest of the day.

If you do decide to trade during this time I would advise to follow the market very closely so you wouldn’t miss a good trading opportunity. Between 4 am and 5 am there can be important economic news releases. That’s the time when market presents good opportunities.

The London session is most active during the times between 4:30 am and 6 am (EST). Especially pay attention to the news releases between 5 am an 6 am. The best currency pairs to trade are EUR/USD and GBP/USD.

Trading during the New York Session

The highest volatility in the Forex market occurs in the first half of the New York session that opens at 8 am (EST). That’s because two major – European and Us sessions are overlap during this time. The major players are active in this time period.

For a day trader this time period is probably the most active one. Many Forex traders trade only during New York session. Since it is the most volatile period it can present many good trading opportunities. Most of the economic news that move the price are released at 8:30. This activity slows down around 1 pm -2 pm (EST).

The rest of the day after that is usually calm. However from time to time Federal Reserve releases it’s news. They do it at 2:15 pm. It can move the currency pairs some more.

From this information you can easily see that there is no need to spend 24 hours a day waiting for trading opportunity in front of your charts. It’s enough to pick one active period in the market to catch a good trading opportunity. This is a way to successful trading in Forex.To know all this nuances you need to learn Forex on a regular basis.

Get helpful information in the topic of one way links – welcome to your own guide.

Bookmark It