Forex Trading - When The Right Time Truly Is Important
Everyone's been told that Forex Trading is a 24 hour market, and it is possible to trade all hours of the day and night. What you've not been told will eliminate your profitability. Forget About any idea of forex trading whenever you want. To become a successful forex trader you need to know when and why to trade during specific forex trading hours. The following paragraphs will teach you how to pick the right time to trade forex.
Forex is really a Foreign Exchange spot market in which traders meet to trade currencies. Forex Trading is the biggest, most volatile market, and contains probably the most liquidity out of any market. Every single day 1. 8 trillion dollars are traded in the forex market. This isn't a game for little kids! The biggest players in Forex are large major banks. It is the banks that you will be competing with, and it is the banks that move the forex market. Real time Forex trading is really a ability that takes time to learn.
You are competing against Ivy League whiz kids and automated trading systems. If this intimidates you, undertake a game of bridge at the senior citizen centre, and try your shot at something safe like government bonds --- Forex is for people who are not afraid to take risks. No risk, no reward! Live Forex trading is a virtual game of hide and seek: The large banks and your fellow fx traders are out to get you. Forget about the results you have 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 for you to trade Forex? The biggest joke that is played on new Forex traders is the myth that Forex could be profitably traded at all hours through the day. It's a big disservice to newbies because they wind up trading at the most unprofitable times of the day. Live Forex trading isn't really round the clock. Let's learn when to trade.
The best Forex news 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 opens at 5:00 pm to 2:00 am EST
London starts up at 3:00 am to 12:00 noon EST
The absolute best time to trade is during the time when New York session and London session overlap. For individuals in the east coast of the United States, it is in between 8 am EST and 12 pm EST. This overlap in sessions is when most of the major action occurs, which is where most intraday traders should trade. During this time period, it isn't odd to seea currency pair like the EUR/ USD move 100 pips. If your goal 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 a good time for you to trade on some early market momentum. Knowing the right Forex trading time can keep you out of trouble.
Live Forex trading is a lot 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, and when the majority of the money is being pumped into the market; a trader has the ability to grab a piece from all of the major moves of the day. Knowing when you should trade comes behind money management and discipline. Enjoy your new found knowledge.
