Pro traders have their personal best times to trade forex for winning. However, it is quite difficult for beginners who don’t have enough experience with it. Commonly, they will get confused to decide which one is the best to start trading.
Traders can use various economic calendars to decide trade as new data releases. Some choose to keep viewing the forex market all day long. The more you try, the faster you’ll find the right time to trade suited well with you.
You may already know that the forex market is active and can be accessed for 24 hours a day. Traders can freely choose whenever they want to open and close trading. However, keep in mind that timing can be everything when it comes to forex trading.
The Best Times to Trade Forex
Finding alternatives to match your appropriate goals with market hours gives traders more chances to get profit reasonably. Rather than setting a workable schedule, understanding the perfect timing is a must. Moreover, every forex market runs in different respective zones.
1. Monday afternoon
Although you’re trading in the best forex broker platform, keep in mind to avoid Monday mornings. However, Monday afternoon will bring some benefit to traders where the market starts to warm up. It means the volume is increasing that worth taking a look into it.
2. Overlap session
Other best times to trade forex are when numerous trading sessions overlap. With its equal high price ranges, overlaps offer greater opportunities. You can recognize it by looking at the busy period session in the forex market. Some options happen each day;
a. For U.S/ London, the heaviest overlap is around 8 a.m. to noon.
b. For Sydney/Tokyo market, the period is in higher fluctuation from 2 a.m. to 4 a.m.
c. For London/Tokyo, the overlap happens in the least amount around 3 a.m. to 4 a.m.
3. During the high liquidity
The trading volume seems warm-up since Monday afternoon. However, it doesn’t reach a peak until Tuesday. It is for the earliest case, sometimes the peak reaches during the middle week (Thursday). Thus, the wise strategy is to lock trading to the middle of the week.
4. London session
Each trading has its own potential to get busy at a certain time. However, there is one that will be always busier rather than others. The London session is known as the best choice to trade when trading peaks.
The Worst Times to Trade
Not only the best times to trade forex, but you also need the right gut to recognize and avoid the worst times ever. Low levels liquidity is the most avoidable one that represents a red flag. The average pip movement on it is too low to cover the spread of currencies. You also need to avoid these times;
1. Late Sunday/ early Monday
Both of these times are the worst when it comes to forex trading. Everything in these sessions is always in a low condition where people still make plans and strategy for the week ahead rather than busy with trading actively. It’s fair to do the same by avoiding trade this week dawn.
2. National holidays
Like other markets, holidays should not be involved with trading activity. At that time banks as the biggest influencer to the forex market is close. It leads the volume of transaction is greatly reduced that make static market during holidays.
3. During major news releases
Basically, the forex market gets a huge impact from financial reports, political updates, and economic data. However, don’t put all your concern into it. It is better to analyze and stay away from it. Keep skeptic by track major news persistently to stay alert for whatever comes next.
Along with avoiding the worst session, forex trading needs a trusted partner to begin. Didimax forex broker is the best choice to hang your commitment. Try to analyze everything before executing by trying the demo version first. You’ll end up being a pro gradually and classify the best times to trade forex suitable with you the most.
