Learning ways in which you should choose the trading hours

During a trading week, the Forex market is open 24 hours a day. However, that does not really mean that a trader can choose a trading time indiscriminately. Learning about ways to choose the correct the trading times is crucial to profitable trade.

Forex operates 24 hours a day! Does that guarantee some sort of liberty?

Coming back to the fact that the forex market operates 24 hours a day in a trading week- do know for a fact that there is no point in trading during a time when the market is passive. The best avenues of making money in Forex can be sought when the market is volatile and not when it is calm. So, the first lesson is learnt. At the core of your efforts towards zeroing in on the right trading time should be your resolve to trade only during the volatile hours.

It is not that difficult to track the busy hours of the market. Before you start trading, make sure you are observing the market for a few days. And, once you do this, you will be able to notice a repeated pattern – which of course, will help you deduce the general volatile and passive hours.

The most commonly traded currency is the US dollar. However, the busiest trading country is the UK. Next comes the US (New York). Since, these are the two countries holding the trading floor- it is only prudent on your part to trade during their business hours. In other words, the best time to trade forex would be something between 8.00 to 11.00 EST. This is the time when you can find the trading floor overlapping and the market remains the busiest. So, the key is to observe the market first and then secure a general idea about the time when the market is going to be most volatile.

Learning about the Forex trading sessions

Further education will tell you that the Forex primarily has three trading sessions.  Trading begins in Australia and Asia and then moves around in the globe through Europe and closing in the New York. Here is a look at main forex trading hours:

• The Asian trading session starts at 6.00 pm EST and closes at 4.00 am EST. The session also includes New Zealand and Australia
• The trading session in London starts at 3.00 am EST and closes at 12.00 pm EST
• New York Trading Session: It opens at 8.00 am EST and closes at 5.00 pm EST

 

It is important to understand that the volatility of the market is at its peak when the trading floor is overlapping. If possible, make sure that you’re executing your moves during this time. You can actually go on to turn to a seasoned forex trader for guidance regarding your trading moves. He can not only advice you regarding the choice of the right trading hours, but also regarding the suitable currency pairs or for that matter a host of other factors that will facilitate your trading moves.