There are different kinds of currency pairs. However, all of them share a certain similarity and that is all of them should be traded at specific time, which are then called the best times to trade Forex pairs. Although the Forex market is open 24/7, it does not mean that it is great to trade Forex pairs anytime of the day, In order to have a profitable trade, there is a need to wait for the right timing.
Well, the best time to trade is when the market is volatile. Every trader should know that they have greater chance of making money when the market is moving instead of when it is calm. The volatility of the market is particularly important for those who use the price action strategies. There are also different sessions in Forex trading and if you know that, you would also know the overlapping sessions. The best times to trade Forex pairs is between 3:00-4:00 am (Eastern Standard Time) and between 8:00-12:00pm(Eastern Standard Time). These are the peak time because these are the times when two active trading centers across the world overlaps (while one is closing, the other one is opening).
To sum it up, the best times to trade Forex pairs is between 8:00am-12:00pm (Eastern Standard Time) because this is the time when the sessions of London and New York overlap. This only means that if you happen to have time between 8:00am-12:00 pm, then that is the time to go online to trade. You should also check the charts from time to time. Regardless of where you are residing, if you truly wanted to make a profitable Forex pairs trade, then you should learn how to take advantage of the said peak times.
Traders should also know that Sundays is not included in the best times to trade Forex pairs. This is because during these days, the movement in the market are very minimal. Therefore, if you plan to trade during these days, then you should definitely stop your plan. Instead, do it during Tuesday-Friday. As a Forex trader, it is extremely important to know when to trade best. Thus, there is truly a need for you to know the Forex market well. In the end, you should always wait for the right timing and grab every opportunity that are right in front of you. You should never let an opportunity pass.
For most forex traders, the time of the day plays a very important role. Forex traders probably share the same problem when it comes to the best time to trade forex. For most, the best time to trade is Asian session hours of trading. Studies show that the trader losses and profit could significantly vary by the time of each day. There are the so-called Range Traders and their own failures and success mainly depend on the conditions of the market itself.
The trading style would definitely mean that most of the traders have a trouble of being successful in forex and this is all because they are primarily trading during wrong time of the day. Most successful traders have the same time to trade which they considered as the best time to trade forex. Most of them trade during early European or Asian and late US trading session and that is essentially starting from 2 PM up to 6 AM in the Western Time or New York, which is also 7 starting from 7 PM up to 11 AM in the UK time.
The statistics of profitability that successful forex traders have definitely vary on the day-to-day basis. There are times when they are most likely to have a stronger performance lineup with the low-volatility hours of trading. The best time to trade forex would for traders are during Asian session of trading and the number of traders who trade during these hours proves this true. The hours of the day, really matter and good to know that there are different ways for traders to trade effectively without experiencing problems and issues.
Even though the forex trade market is open 24 hours every day, there are still few hours, which are considered as the best time to trade forex. There are times when the traders to leap into market, but there are also times to stay away. Most traders may agree that the best time for them to trade forex is within first 3 up to 5 hours of the sessions most especially if the fundamental analysis mainly points on new calendars for economy are released.
Competition in forex trading is becoming more intense and aggressive and this is all because of the urge of forex traders to have a hundred percent returns. Traders have their own freedom to trade either medium term or short term, but what really is the best time frame to trade forex in order to get the biggest profit as possible.
Short term forex trading
This is one of the best time frames to trade forex most especially for the rookies traders out there. Their goal here is to use the tight stops and most of all aim for a minimal gain. On the other hand, this does not effectively work. The price movements are in random basis and there are variables that are involved, which in the first place have nothing to do with what the main trend is.
Medium term trading
This type of trading is suited to trade with people having day job. They would find different high trade probability, which in turn would allow them to take losses and profits in a very quick way. The swing traders use the time frames of 2 days up to a week allowing them to study the prices accurately knowing that the market mainly moves not in random basis compared to the day trading.
Long term trading
This best time frame to trade forex works best on the part of the pro. On the huge time frames, the currencies trend well. If the forex traders have the right education and discipline, they can definitely make their own large gains. The trend trading is considered as cost and time effective because they do not mainly take number of trades. The trends in currency market are somehow related to the economy of the country, which makes the forex traders last for a period of weeks, months, and even a year.
Think deeply on the time frames that are stated above. Finding the best time frame to trade forex is very essential in order for the traders to have large gains that they are aiming for. On the other hand, different time frames are suited on different types of traders. Therefore, if you are going to choose the right one for you, there is always a need to know your own abilities for you to become more successful. This would give you tons of benefits and would help you decide to continue what you have started.
The foreign exchange market works 7 days a week and 24 hours a day and this is virtually impossible for a person to have a track every single day on the forex market. Thus, it is very essential for a trader to understand which is the best day to trade Forex so he or she can expect to have a high unpredictability session hence he or she is able to execute his or her trading tactics on the most efficient way.
So now, what is the best day to trade Forex? If you want the volatility, then it is better straightforward. When it comes to the volatility in the industry of Forex market, it has two act of play. The first one is the start of the week wherein there is a very slow progress of activity coming from the late Sunday until Monday, then rising on Tuesday.
On the other hand, there is a little decrease of the trading volatility by Wednesday, ahead of another boost the next day. Thus, Thursday has the highest scores when it comes to volatility that is nearly followed by Friday. The volatility will end suddenly around 17:00 GMT since the market will go dormant on the weekend.
Sunday to Monday
Whenever it’s Monday morning in Sydney and New Zealand, it is still Sunday night in Europe. Considering that there are many activities on the economy in these days, there is still a less amount of chance that the Forex market will create a move that will adjust on the new supplies and demand realities by the time it opens. Thus, such days isn’t the best day to trade Forex for the reason there is no much economic activity occurring.
By Tuesday, the trading rapidly picks up the currency and pace market experience of the first spike in the activity trading within the week. By contrast, the volatility of the market in Tuesday is around 120-130% than Monday. And this is the reason why Tuesday got the best days to trade in Forex market.
By Wednesday, there is a change on the volatility. The activity in the market decrease among of what it was on Tuesday and Monday and this occur because of “swaps”. Swaps can be considered as the overnight interest compensated to traders who have their positions among daily sessions. This is why Thursday is the champion when it comes to volatility. If you are after the volatility, then bear in mind that Thursdays are the best day to trade Forex.