Best Time To Trade Forex

In the previous article, we demonstrated the relationship between hour to trade and profit, going through the opening hours of the Forex Market and its influence on profits. In this article we will give special focus to the best time to trade Forex because we know that in this market, time is everything. Although the market is open 24 hours a day, certain times of the day are more likely to generate greater gains, that is, some periods of the day are more volatile than others.

The three times when the highest volume of trading occurs and, therefore, the chances of winning a lot of money increase, are Asian Close/London Open, London Close/New York Open and New York Close/Asian Open. Pay special attention to the time when the European session (London) and the North American session (New York) are open simultaneously. In this article we inform the opening and closing times of the main stock exchanges in the world. And don’t forget: 80% of your profits will come from 20% of your trades. Therefore, any experienced trader will want to focus on a few, but on the right trades.

But would it be ideal to trade during cross over sessions? You will have to explore your own trading strategies. If you are a long-term trader and trade weeks and months per position, then it is clear that cross over sessions are not for you. But if you are a day trader, you will be more focused on these cross over sessions, unless your trading plans indicate otherwise.

And what else about the Best Time To Trade Forex?

Between 1:30pm and 4:30pm, UK time, there are great opportunities in terms of trading on the Forex Market. This is because US traders are just beginning their trading day, and this is the moment when the main economic data are announced (this often causes sudden movements in the dollar values). Attention, therefore, the moment when the economic data are released are very volatile and unpredictable moments, which can generate big profits, as well as significant losses.

Between 8am and 12pm, UK time, is also a good time to negotiate. Between 6am and 8am there are also good trading possibilities for those who do not want to take big risks, since there are no important announcements that generate market movement. Of course, not everyone in the world can trade during this period due to the time zone.

In general, Sunday is the calmest day to trade in Forex, everyone is resting and moving away from charts and keyboards. After Sunday, we have Friday afternoon. As they are times of low trading volume, it becomes more difficult to adhere to a trend in your favor and make a profit.

Midweek (Tuesdays and Wednesdays) is when you will see the biggest movement of all major currency pairs. Therefore, choosing the right time between the beginning and the end of the week will be the key to your success in the Forex Market.