It is true that the forex market is operational throughout the day, but that does not mean that it is always active the whole day. You can make money from Currency trading when the market is up, and you can even make profit when the market is down. But it will be a very difficult time trying to make profit when the market does not move at all. Thus it is very important to know when it is ideal to trade and make the best out of the forex.
The Days Best To do Forex Trade
Out of all the other trading sessions, the London session is the busiest session to trade, but there are also particular days in a week where all the markets incline to show more movement. It would probably be best to trade during the middle of the week, since this is when the most of the trading activities take place. Fridays are usually busy until mid noon EST after that the market becomes slow until it closes at 5 in the evening. This means that the forex market operates only half days on Fridays. These experiences tell us the timings when the market is busiest and are an indicators for our trading. The busiest times are the best times to trade because they give you a higher chance of success.
Manage Your Time Wisely
Even though the forex market is open round the clock daily, it doesn’t mean that trading action happens all the time. Besides, it is necessary to sleep as it is an essential part of a healthy lifestyle. Sleep is required to get recharged and gain energy so that one is able do even the most boring tasks. You will definitely need your rest if you plan on becoming a hotshot forex trader. Each trader should learn when to trade. To be more precise each trader should know when to trade and when not to trade.
Best Times to Trade
The best time to trade in Forex is when two trading sessions are overlapping. These are occasions when the major news channels focus on the market and result in some directional movement and helps produce volatility. Also use the market hour sheets to note the opening, closing timing commonly known as the cheat sheet. Out of the three sessions the European session is the busiest session. The middle of the week typically shows the most market movement, as the range of pip broadens for majority of the major currency pairs.
The Worst Times to Trade
Sundays when everybody is enjoying the weekend. Fridays when the liquidity is down during the second half of the New York session. Holidays are also the worst time for trading when everybody is on a break. Unable to trade during the optimal session do not panic. You can always be a swing trader or position trader.
Always remember that timing is a powerful tool for Currency trading to find strong price movements. The best hours open the avenue for many trading opportunities. So trade like a professional to make quick profits during these best hours.