Most people have been told that Forex is known as a 24 hour market, and it is possible to trade all hours through the day and night. What you haven't been told will eliminate your profitability. Ignore any idea of forex trading whenever you want. To become a successful forex trader you have to know when and why to trade during specific forex trading hours. This article will educate you on how to pick the perfect time to trade forex.
Forex is a Foreign Exchange spot market whereby traders converge to trade currencies. Forex Trading is definitely the largest, most volatile market, and possesses the most liquidity from any market. Every single day 1. 8 trillion dollars are traded in the foreign exchange market. This isn't a game for little kids! The biggest players in Forex are large major banks. It is the banks that you are competing with, and it's the banks that move the forex market. Real-time Forex trading is really a skill that takes time to master.
You will be competing against Ivy League whiz kids and automated trading indicators. If this frightens you, take up a game of bridge at the senior citizen centre, and try your shot at something safe like government bonds --- Forex News is for people who aren't afraid to take risks. No risk, no reward! Live Forex trading is really a virtual game of hide and seek: The big banks and your fellow forex traders are out to get you. Ignore the good results you've had in demo accounts, real-time Forex trading is really an entirely different ball game. Take your time reading this
When is the best time to trade Forex? The biggest joke that's often played on new Forex traders is the myth that Forex could be profitably traded at all hours through the day. This is a big disservice to newbies because they end up trading at the most unprofitable times of the day. Live Forex trading isn't really 24 hours. Let's find out when you should trade.
The most effective Forex trading hours are when there is an overlap between two major sessions. The major sessions are:
New York starts at 8:00 am to 5:00 pm EST
Tokyo starts at 7:00 pm to 4:00 am EST
Sydney starts at 5:00 pm to 2:00 am EST
London opens at 3:00 am to 12:00 noon EST
The absolute best time for you to trade is during the time when the New York session and London session overlap. For traders in the east coast of the United States, this is in between 8 am EST and 12 pm EST. This overlap in sessions is when most of the major action takes place, and it's also where most intraday fx traders should trade. During this period, it's not unusual to seea currency pair like the EUR/ USD move 100 pips. If your main objective is to do any kind of day- trading, do it during this overlap. The hour prior to Asian session closes overlaps with the open of the London session (3 am to 4 am); this is an excellent time to jump on some early market momentum. Knowing the proper Forex trading hours can keep you out of trouble.
Live Forex trading is significantly different from trading on a demo account. Real-time forex trading is dependent on when you decide to trade. By only trading on the prime time, when two sessions overlap, when much of the money is being pumped to the market; a trader will be able to get a piece of all of the major moves of the day. Understanding when you should trade comes behind money management and discipline. Enjoy your new found knowledge.
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