We've all learned that Forex is a round-the-clock market, and that it is possible to trade all hours through the day and night. What you haven't been told will kill your success. Forget any notion of trading whenever you want. To be a successful trader you have to know when and why to trade during specific forex trading hours. The following paragraphs will educate you on how to pick the perfect time to trade forex.
Forex is a Foreign Exchange spot market at which traders converge to trade currencies. Forex Trading is the biggest, most volatile market, and it has by far the most liquidity out of any market. Every single day 1. 8 trillion dollars are traded in the foreign exchange market. This isn't a game for little boys! The biggest players in Forex Trading are large major banks. It's the banks that you are competing with, and it's the banks that move the market. Real time Forex trading is a ability that takes time to master.
You are competing against Ivy League whiz kids and automated trading systems. 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 is for those who aren't afraid to take risks. No risk, no reward! Live Forex News trading is really a virtual game of hide and seek: The large banks and your fellow traders are out to get you. Forget about the success you have had in demo accounts, realtime Forex trading is an entirely different game. Take your time reading this article
When is the perfect 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. It's a big disservice to beginners 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 in 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 starts up at 3:00 am to 12:00 noon EST
The absolute best time to trade is in the period when New York session and London session overlap. For those on the east coast of the United States, it is between 8 am EST and 12 pm EST. This overlap in sessions is when most of the major action takes place, which is where most intraday fx traders should trade. During this time period, it's not odd to seea currency pair like the EUR/ USD move 100 pips. If your main goal is to do any kind of day- trading, do it during this overlaping time period. The hour before the Asian session closes overlaps with the start of the London session (3 am to 4 am); this is an excellent time to trade on some early market momentum. Knowing the proper Forex trading hours could keep you out of trouble.
Live Forex trading is much different from trading on a demo account. Real-time forex trading is dependent on when you decide to enter a trade. By only trading during the prime time, when two sessions overlap, and when most of the money is being pumped to the market; a trader is able to get a piece of all the major moves of the day. Knowing when to trade comes behind money management and discipline. Enjoy your new found knowledge.
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