Best times trade forex – Once you know how to trade on the foreign exchange market, you might start wondering when are the best times to trade forex… Best Times Trade Forex lets see..
The foreign exchange market operates 24 hours a day, so it can be difficult to determine the most optimal time to trade. Compounding this issue is the fact that different trading strategies may lend themselves better to different times of the day, and even different currency pairs may be better traded during certain blocks of time – best times trade forex.
There’s even a personal aspect to trading to consider, especially if you are tracking and initializing your own trades rather than following forex trading signals or tips. best times trade forex.
Best Times Trade Forex | According to Success Rates
Most profitable forex traders are able to trade between the periods of 2 PM to 6 AM EST. This takes advantage of both the United States and Asian trading sessions, which are on different time zones.
Though the forex market is open 24 hours a day, the period between 2 PM and 6 AM generally sees more action and therefore both higher volatility and higher liquidity. Trading during these times does matter — trying to trade continuously even when the market is slow could lead to poor results, especially in currency pairs that don’t generally experience significant amounts of fluctuation.
Apart from this, it isn’t always a good idea to trade at the end of Friday or at the end of Sunday. The market generally acts erratically during these hours as they are the one time the market shuts down — from 4PM EST on Friday until 5PM EST on Sunday.
Best Times According to the Markets
You may want to adjust your schedule based on the currency pairs that you are tracking.
The Tokyo market opens at 7 PM and closes at 4 AM Eastern Standard Time — this is when trades involving JPY, for instance, are more likely to fluctuate significantly. Consequently a trader that is trading on USD/JPY may find that their trades through 7 PM and 4 AM EST are more successful, even if the hours may be a little difficult to contend with.
Comparatively, the London market opens at 3 AM and closes at 12 PM EST, making this the best time to experience fluctuations within USD/GBP and other similar currency pairs. The United States opens its market at 8 AM EST and closes at 5 PM EST — and this is when a significant portion of the trading happens. For a currency pair such as USD/JPY, either Tokyo or USD trading sessions may be important. For a currency pair such as AUD/GBP, a trader may want to focus on the London open and close and forego paying attention to the United States market hours. However, the Tokyo market also tends to have a fairly significant influence on Australian trading – best times trade forex
Of course, this also means that anything that either country is undergoing economically will be affecting the market, so traders still need to be very cautious about the trades that they are entering into. When markets crossover, traders have to be conscientious regarding current events and news.
Best Times of the Week for Forex Trading
It doesn’t always come down to hourly trading; there are also some days of the week that are generally best. In general, Tuesday, Wednesday, and Thursday tend to be the most profitable for traders. Mondays are usually not very effective, and so they are often the day that traders take off. This is mostly due to liquidity and fluctuation, as the most currency trading is done in the middle of the week. best times trade forex
As mentioned before, Fridays and Sundays tend to be particularly unpredictable and difficult to trade on because they are shut down for part of the day. However, some savvy traders are able to capitalize on this; there are some pairs, for instance, that can experience a minor resurgence at the beginning of a trading week, or may begin with a downturn.
Best Times According to Scheduling
Of course, trades aren’t completed in a vacuum — the trader themselves matter, too. Often you may find that you have a specific amount of time that you can devote to trading; as long as you are consistent, that isn’t necessarily a bad thing. The important thing is that a trader commit to a certain time period and that they also give themselves a break.
There is an allure to trading that can lead to traders attempting to continue for far too long;