What are the best currencies to invest in? FxPremiere Group sends out Signals via Telegram and Email for the following pairs.
With the following being the most traded currency pairs
- U.S. Dollar (USD)
- European Euro (EUR)
- Japanese Yen (JPY)
- British Pound (GBP)
- Swiss Franc (CHF)
- Canadian Dollar (CAD)
- Australian/New Zealand Dollar (AUD/NZD)
- South African Rand (ZAR)
What is forex trading?
Currency Exchange from one to another. Time is everything here.
Best Day and Best Time For Forex
So, what are the best days of the week and best time to trade Forex?
Let’s go over the whole trading week in detail. First of all, there is a slow development of activity from late Sunday – Monday. Then the uptrend is when its pace and peaks on Tuesday evening. A small drop of trading volatility occurs on Wednesday, right before another increase the next day. The weekday that scores highest in terms of volatility is Thursday.
If you’ve got some trading experience under your belt, you may have already noticed that market volatility is not consistent. It doesn’t just vary on an hourly basis, but also every week, or even month.
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In the table above, the ‘Sunday’ column indicates low pip range, and the columns for ‘Tuesday’, Wednesday’, and ‘Friday’ indicate high range. Why choose the pip range as a volatility indicator? While pip range doesn’t exactly measure volatility, it’s an intuitive way to get a big picture of the market. Pip range shows how far markets can move, on average, on a particular day. What it doesn’t show, is all the swings within that pip range. This is just something you have to keep in mind, if you want to know the best days for Forex trading. When you’re using trading software, you can easily track volatility. All of the data is available to you and you don’t have to search for it – especially if you’re using a powerful trading platform like MetaTrader 4 (MT4) Supreme Edition.
Sunday to Monday
Time zones work also plays a role in daily volatility. When it’s Mondayearly hours in Australia, it’s still Sunday late evening in Europe. European and U.S. sessions are not open during this time. The markets are already active, but volatility is relatively low. Since there isn’t much economic activity on weekends, it’s also unlikely that the market will adjust to new conditions.
Sunday night is the only time of the trading week, when gaps occur regularly for currency pairs. Therefore, Sunday is not the best day to trade the Forex market.
On Tuesday, trading quickens and the market experiences the first spike in activity. Market volatility on Tuesday is approximately 127% of what it is on Monday. This is why Tuesday is one of the best days to trade Forex Signals . On Wednesday, there is a slight dip in volatility. Trading activity decreases to somewhere in between what it is on Monday and Tuesday. This happens because of a phenomenon known as swaps.
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Fridays – Something interesting happens on Fridays. The currency pairs that are popular during the Asian and European sessions begin to overlap. They stay almost as volatile as they are on Thursday. Mostly, we are talking about the EUR/JPY and the GBP/JPY currency pairs.What are the best currencies to invest in?.
Best Months to Trade Forex
Now that we have reviewed the intra-week market dynamics, let’s see what happens throughout the year. What are the best months to trade Forex? The whole calendar year divides into three clear periods of volatility. Out of these three periods, two provide good conditions for trading.
The first good period includes these five months:
After those months, volatility slows down for the duration of summer:
The second good trading period occurs in autumn, and is the most volatile part of the year: What are the best currencies to invest in?.
December is also a generally good month for trading, though there’s a noticeable decrease in market activity near the end. The main reason for this fluctuation in volatility, is holidays. Any holiday period naturally leads to a decrease in trading volumes. After the holiday period ends, there’s a pickup in market activity.
Summertime Trading Slump
Once again, it all comes down to the habits of the big market shakers. There’s a saying on the trading floors of London: “sell in May and go away”. Not surprisingly, S&P research indicates that summer months show the least returns for most European financial markets. August is the worst month to trade, since many institutional traders in Europe and North America are on vacation. This leads to bigger and less predictable price swings. The big market movers have to protect their portfolios and returns, which leads to:
- Long-term traders closing their trades over the summer
- A return of trade action when the the autumn comes
- What are the best currencies to invest in?
The last four months are the most important for yearly returns: because even after you’ve experienced a poor summer season, it’s possible to improve your profits during autumn and winter. If you’ve decided to skip the summer trading season, be smart about how you return to the market. Test the new conditions on a Demo account first, to get a better feel for future trends, and without exposing yourself to risk.
Remember: the process of becoming a trader is all about you. What works for one investor may not work for another. There are very few wrong ways to invest, as long as you do so in an educated, consistent, and thoughtful manner.
Knowing your own type of trading temperament will help you in choosing the right strategy for you