The best time to trade forex 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.
We have learnt different market trading sessions.
Tokyo session, London session and New York session; London session being the biggest and the most traded session.
In order to profit from trading forex,you must consider the best time to trade and best days of the week
The bad days you should avoid trading.
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 excitement mood . As Fridays approach to the end, our mind has already switched thinking of 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 to trade. On fridays, most markets close after midday and the market movements slow down.
Traders are withdrawing from the market, getting ready for the weekend. This means you only work half days on Friday.
However that does not necessarily mean that you don’t trade at all.
If it’s your lucky day and you spot one of that is eye catching. you can grab it. Otherwise precaution should always be taken before taking any step.
The best time to trade forex.
When we talk about the good days of trading, it is that time when 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 dish for yourself.
There are some moment, things happen that way in forex. The markets are always busy during mid week. This is when you see some pairs try to make significant moves in the market.
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, you are always at an advantage. 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 to trade during the week. Most of the traders are in the market which makes 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. 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 experienced you are, trading news can take you down when a wrong note is hit.
Managing your time while trading.
Now that you know when to trade, the good days you 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 to manage your time while trading because 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 some 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. Not knowing whether it’s a good side where the animals are, you may end up eaten 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 to trade your strategy works and follow that.
Once you Know the best time to trade and the time you shouldn’t makes trading enjoyable and exciting to do.
Best days and time to trade
- When two sessions are overlapping; These are the times when major news events are released.
- The middle of the week . During mid week, price moves swiftly and most of the traders mean business. Currency pairs makes the most movements.
- Morning hours, since the market volumes and prices go wild acts as the opening bell.
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.
How long you can hold an open position in forex, is a personal thing for all traders. The decision is all yours. You know what your goals are as a trader, the kind of strategy you use to trade. All this starts from what you are? and What you want? If I am to answer,...
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