Best Time To Trade Forex
Many people ask me what is the Best Time To Trade Forex. My usual answer is “that depends”. There are many variables as to when is the best time to trade the forex market and they will change from person to person. This article focus on the different things to consider when you are looking for the optimum time for you to trade forex.
First of all you should look at what time you have to trade, if you work from 9-5 EST then you will have to rule that part out. If you have your whole day to consider, you’re in a much better position. You also need to look at what time zone you are in as well. The market moves around the clock and some traders try and trade around the clock and get burned out.
You also need to figure out what kind of trader you are. If you like to trade the news announcements then you need to be at your computer from 8:30-10am ET to catch the US news and also at the open of the European session and Asian sessions for the majority of their announcements. (not my kind of trading)
Another thing you will have to consider is what time frames you trade. If you are a scalper trading on 5 minute charts, when you will want to watch the charts when different markets are open at the same time for the best volatility. If you are a swing trader or an intra-day trader then you will not need to spend as much time at the computer each day and you can be a little less concerned about what time you have.
I prefer spending an hour or two in the morning (I live in the Pacific time zone US) and an hour or so in the evening before I go to bed. I am primarily an intra-day Trader and I spend most of my time between the 1 Hour, 4 Hour and the 1 Day charts. So this works for me. Because I work from home on my computer, I can keep an eye on my trades here and there as I feel like, but I find that I do better if I am not staring at my trades.
Here is a graphic I made to help me know when the markets are open and overlapping around the world. email me if you would like the .pdf file with different time zones.
Hope this helps you find your sweet spot for the best time to trade forex.
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I am so impressed I had to save it so I continously go back and read things I may have skimmed