I'm sure you want to know "When Should I Trade The Forex Market"?
For a 24hr Forex market, is there really a best time to trade the Forex markets?
When Should I Trade The Forex Market?
Looking to trade round the clock will not only prove to be negative, it will cost you a lot of money.
The best Forex trading times is a statement for a reason. In fact, picking a specific trading session, learning its ways and then trading it is what best fits a new trader. One thing you do need to take into consideration is the time you have free to trade.
There are three main sessions in the Forex market.
1. The Forex European session
This session is usually the session I trade, which can start as early as 6AM. Traders in London get to their desks early most days and look over orders from the night before. The European session is the most liquid session and draws many traders.
The volatility may be much for new traders so it may be advised to avoid it. After some practice and experience, you will find it can be the most profitable.
This session sees currencies move quite rapidly in short-term time frames.
2. The Forex US session
While the UK session moves into the afternoon, the US traders like London are getting to their desks early. From around 12/1PM (British time) traders in the US are waiting. Two markets are now interlinked and these times are vital for currency pairs which have currencies from both session.
A good example is the GBP/USD, this is the pound against the dollar. During this time, both markets are active and means it could provide volatile movement.
3. The Forex Asian session
This is the least liquid session of the three. However it is easy to pick out trends in this session for specific markets. As the market is less liquid, spotting patterns is easier (this doesn't’ mean they are not identifiable in other sessions).
Trading the Asian session takes much patience as through the night, you may see your trade move through only a few pips compared to other market sessions. The Asian session tends to get underway at 11PM and really gets moving around 1AM.
All markets have their advantages and disadvantages, but like stated above, it's about defining a session when a beginner and trading it. As well as trading a specific session, knowing what news is coming out is vital.
Use websites such as Forexfactory.com which has a very good and in-depth economic calendar. This isn't enough however, as well as knowing what news is out, you should get a live news feed which delivers the news to you as it hits the wire. A live squawk is a good one but there are several news feeds available.