What is the best time to trade forex?

What is the best time to trade forex

The best time to trade forex on the forex market is when the market is most active. When more traders are active and the trading spreads (the difference between the bid price and the ask price ) are a bit small.  This happens especially when the market trading sessions are overlapping and when most fundamental economic news are being released.

which is the best time time to trade forex We have learnt different market trading sessions such as Tokyo session, London session and New York session; London session being the biggest and the most traded session. 

To be able to make good use of these sessions, we must consider the best time and days of the week to trade and certain days when markets move slower.

 

The bad days you should avoid.

 Looking at a normal perspective in our lives it has never been perfect on Mondays and Fridays.

Mostly Mondays we always wake up a bit lazy due to weekend excitements and freedom we give to our mind and body, so still praising the weekend mood . As Fridays  approach to the end of the day, our mind has already rested preparing for the weekend, it slowly slows down as the day collapses.

This almost applies to the markets. Usually on Mondays there is a high level of uncertainty about the direction each pair will take in the week ahead. Traders are just getting back to work after a weekend and some are not yet ready to start working so markets still move slower, therefore it might not be a good time to trade unless you see a good pair you can’t resist.

Friday after noon is also not a good time because most markets close after midday and the market movements are slowing down. Traders are withdrawing  getting ready for the weekend. This means we only work half days on Friday,however that does not necessarily mean that you don’t trade at all.

It may be your lucky day and you spot one of your eye catching pair that would make your week begin with a big smiling fish inside your net, so as on Fridays. Otherwise precaution should always be taken before taking any step.

The best time to trade forex.

 Talking about the good days of trading is that time you open the charts and find things moving swiftly. It’s like someone surprising you with your favorite dish when you have been starved for some time. Who denies that they can’t surely put a smile on the face. A mere glance at it, you would surely wish for everyone to lose appetite so that you can have the whole thing for yourself.

At some moment things happen that way in forex.  Imagine when  you have fully prepared for your fresh trading week,  Identifying the weak and strong currencies, events that are likely to affect the markets such as available news in each regions and important events and  then point out your strong pairs that you think can make you a good meal ,  mid-week surely does it for you.

Here am talking about a Tuesday, Wednesday and Thursday. These three days always have high market movements, are highly liquid and have nice setups, it’s the times when most corrective movements are made and some are trying to cover up some gaps.

For day traders who do lower time frames they are always at an advantage for there are more chances of finding correct setups. For those who trade on a big time frame like an hour, 4 hours and above, you can’t fail to find 3-4 setups that you can take advantage of.

Mondays everyone is warming up for work and mid-week most traders are actively making money.

Mid-week is good for strategic traders who want to make it out of the week with serious profits.  Therefore is the best time of the week to trade because it has many participants making it more liquid , highly volatile hence more opportunities available for traders.

It is also during this time when most of the major economic news are released and traders never blink when it comes to serious news in the market. But be careful with news, they never taken any ones side. No matter how expert you maybe, trading news can take you down when a wrong note is hit.

 

Managing your time while trading.

 After we have been informed about the different sessions we can trade, the good days we can make good profits, I don’t find it cool for someone who would want to trade all sessions, day and night for 24 hrs -5 days. Why do that, when you can do much more in just an hour.

It’s important that we manage our time while trading because also a healthy mind needs a healthy body.

For your mind to give you better results you don’t have to put it to fatigue. Its necessary to have enough rest for your body and your brain to work well, have time to eat a nice meal, spend good moments with people who can make you smile and attend to other personal matters. That makes you live a better life without a lot of worries spending all your time with your eyes fixed on the computer.

Being a hunter who lays his trap all day in  the bush  with his gun  waiting for a catch without knowing whether it’s a good side where the animals are, you may end up being eaten up by the animals or will have to always go hungry every day because you may never catch any.

Prepare before you take any trade. First have a strategy, know the good/best time your strategy works and follow that. Knowing the best time you should trade and the time you shouldn’t makes trading enjoyable and exciting to do.

Best times and days to trade

Bad times and days to trade

  • Sunday to Monday; slow development of activity
  • Friday evening; trader are rushing for weekend
  • Public holidays
  • Major news events, markets are in a crazy mood.

 

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