Timing Your Currency Trades to Match the Market

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Because the currency markets are open for trading 24 hours a day one could trade at anytime. That doesn’t mean that every time is the best for trading though. Undoubtedly the best time to trade currencies is when the most traders are actively buying and selling. The larger volume of trades makes the market more dynamic and gives a better opportunity for prices to rise or fall rapidly, thus giving fast profits. When the markets are slow you might as well forget about trading for the day, close out of your Ironfx account, and go do something else.

Because London is the center of the forex world it is during the London market hours that trading increases the most. New York is also very active and because there is just a 5 hour time difference between the two there is some overlap during the day when both markets are active and this is the ideal time to trade in forex, if you are focusing on USD or and of the European currencies.

Trading in the forex market actually begins with the open of the Tokyo market at 8:00pm until 4:00am EST. London trading kicks off at 3:00am EST and are done trading at 11:00am EST. And finally, the New York traders are active between the hours of 8:00am and 4:00pm EST.

By far the most volume occurs with the USD, EUR and GBP and so it make sense to trade when the markets for these currencies overlap. This is between the hours of 8:00am and 11:00am EST when both the London and New York markets are still open and active.

If you are looking to get the best advantage in your forex trading you would do well to focus on these 3 hours of the day for your trading in EUR/USD and USD/GBP. Because you’ll find the greatest volume of trading during this time you will also find the greatest price movements and the greatest chance to profit from these movements. When looking for a time based advantage keep in mind too that Mondays and Fridays are often poor choices for days of the week.

The reasons behind this are quite logical. Monday is the start of the trading week and frequently the market is trying to decide whether to continue the previous weeks trend based on weekend news and events. This can lead to either slow or congested trading. Fridays are typically a poor choice due to the large volume of trades being closed in anticipation of the weekend.

With all of this in mind its easy to see that the best times to trade currencies are between 8:00am and 11:00am EST on Tuesday, Wednesday and Thursday. If you can master your trading you could make a living working just these 9 hours a week at forex trading. That should be an encouragement to any prospective forex trader!

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How to Make your Forex Trading More Profitable

Forex trading means buying the currency at one price and its immediate resale at a higher price to get profit. Another variant is possible, at first you sell, then buy at a lower price, but the goal is the same – making a profit. At the first view, this activity seems to be simple but in fact, it hides the serious work, concerned with the market analysis, the choice of time for entrance, checking the current market trend, the choice of the point to close the order. Such process can take as minutes as the months. You can never predict the result, it can be profitable or not.

Forex Strategy
Forex Strategy

 

There are many methods to analyze the market, to make the decisions. These methods are the fundamental, the technical, psychological analysis and others. As the rule, trader uses some methods of the analysis, combining them in the comfortable proportion. As the consequence, he gets the own best Forex trading strategy.

The result of his trading depends on the effectiveness of the strategy. The work on Forex is unpredictable, and it’s impossible to determine the future movement of the exchange rate. However, it’s possible to increase the probability of success through the effective trading strategy. The trading strategy is the model of your work on the Forex market. It doesn’t allow emotional decision-making and shows the trader how to act.

All the professional traders know that the effective Forex trading strategies, with the skillful management of capital, can afford to earn on Forex market. It is obvious, since only a good trading system explains when and what should be done in any market situation.

When traders use trading strategies, they save their time and efforts, making the necessary decisions; they exactly know what actions will prevent their money from the unnecessary risk and what actions are needed to increase trading profits.

The work of traders is the constant fight with the emotions, greed and fear. It’s the ability to be always balanced.  I wish you win in this fight, and develop your own Forex trading strategy, which will bring you profitable and enjoyable trade.

Also try to use some Forex trading tools that can make trading more profitable. Use such tools as Fibonacci and Camarilla calculators and don’t forget about Metatrader custom indicator that can show live major Forex news directly on your chart.

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Top Advice for Aspiring Currency Traders

Currency exchange is the simple act of buying and selling currencies from different countries. With the advantages of an open market, it can take place almost anywhere in the world. Forex provides a platform for a number of financial institutions and banks from virtually anywhere in the world to trade on foreign currencies. To some degree, currency exchange trade is allegorical with stock exchange. However, unlike the stock market, Forex is open 24/7 and involves a far greater amount of trade.

Currency exchange can be a good way of making money. In fact, people make money capitalizing on the ever changing relative value of the currencies. Every day the value of one currency against another currency changes as a result of the complex effect of several financial factors. If you are willing to start a business on currency exchange, you need to monitor the market for a considerable amount of time to understand the trends and factors. Advice from those experienced in this market is invaluable. A good method is to practice with virtual currencies on Forex simulation games.

Forex has no specific timetable. Online-based real time large scale programs enable Forex to be operated 24/7. In your particular region, the standard offices of Forex obviously follow a specific schedule. But while it is closed there, another Forex office is operating at full spin in some other corner of the world. In fact, Forex is the largest financial market in the world. It always offers investment opportunities for people. The exchange price of any given currency keeps altering every single day. There are a number of trading programs available on the internet that promise to make substantial amounts of cash from Forex within a short span of time. Though trading wisely definitely ensures profit from the market; it is advisable to simply watch the changes in the major currencies for a few months and to study the causes of change before embarking on your trading program.

Forex is considered to be an ideal example of perfect competition. The market is literally global and the information is not controlled by any authority. The number of buyers and sellers in this market is higher than any other market in the world. Some stock markets can be manipulated if one has a large amount of money and some influences over the authority. But manipulating the currency exchange market is near to impossible. On the one hand it is good as no one is getting any extra benefit.  However, on the other hand, it makes the market more difficult to understand.  

Investing in currency exchange is clearly a risky decision. It can bring you both profits and losses. That’s why studying the industry profoundly before putting your hard earned money on it is essential. But if you are really determined to make a fortune, trading currency exchange can be a rewarding experience.

Article by Debbie who usually writes about personal finance, foreign markets and currency exchange. 

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Knowing More About The Use Of Forex Trading Signals

Trading Currencies

As a beginner trader, there are many things to learn. Honestly, a lot of people were convinced about the simple profit making that only just a few trades and a short period of time can bring up a lot of money. In fact, there is no job which earns money that easy. No matter trading stock or trading currencies (Forex), the trader should know all the fundamental things as well as basic concepts in order to trade effectively that bring more and more money.

To do so, understand carefully the Forex trading system is needed.  Although once has chosen to begin trading stock, one must have learned or have known something about Forex trading system, but however, a good lesion should be taken for the best result.

Although trading Forex is somehow easier than trading stocks, the Forex trading signals are very important to know in order to get understand the changes of the market to adjust the qualities to meet the market. Moreover, the Forex trading signals are like the stock news, which are very important since they give the latest information of the market and some changes which will be applied.

Forex Trading System

To be a successful Forex trader, understanding the Forex trading system is not enough. Getting the latest Forex trading signals is also important in order to trade profitably. With many traders, although they are good are trading and predicting the market, they always have a list of Forex trading signals providers in order to justify their trade accordingly to the rates of the market.

As many people have said before, the best way to earn experience from trading is to trade on their own. Many websites offer demo accounts for people to start trading. In some websites, if you trade well, you will get many bonuses at the end of the month. Moreover, these trades will give you the real experience since the currency rates are based upon the real-time rates. Generally, trading with demo account is the first step to learn Forex since you will know and will experience the feeling of trading Forex. Although you are using free money, but the experience and the techniques are real. What you have learned in trading with demo account will be the best to help you later.

A good list of Forex trading signals providers will greatly help you in order to get the latest news of the market.

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Four Common Misconceptions About Trading Forex

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A lot of people who are thinking about investing in Forex are put off by some of the stuff they read on the internet about the Forex Market. A great many of these things that they read are not true, incomplete or inaccurate. Forex Investment is neither as risky, nor as rewarding as these exaggerated articles tent to portray it. Sure, you can make a great deal of money and you can lose a great deal of money, but it is possible to go into Forex Trading armed with a sensible approach and the knowledge that you have researched Forex Trading thoroughly. A good place to start is by avoiding these four misconceptions.

(1) You Will Make Your Fortune Trading in the Forex Market
One of the reasons that Forex gets a bad rap from time to time is that people believe the hype that they will be able to simply get their money, invest it in a load of currency pairs and then they will be able to kick back and watch all of their new riches start pouring in. This might happen to a few very, very lucky individuals, but it probably wont happen to you. The fact is that there is only a small percentage of investors who make their money through investment in Forex Trading. So getting rich quick is not a good aim when you start out. Rather, you should look at Forex trading as a way of building a retirement pot or nest egg.

(2) If You Have A Great Deal of Knowledge at Your Disposal You Cannot Fail.
Knowing what you are doing is essential and researching your markets is also crucial. Studying patterns of old trading and reading up on all the Forex sites and forums is also useful. But remember this. Just because you have read everything and studied everything and done all the Forex workshops does not mean you can feel confident of not making losses. Being aware of the possible pitfalls does not mean you will always avoid them.

(3) You Should Always Listen to the Experts of Forex Trading
There are a lot of people out there who claim to be experts in Forex Trading. Whilst some of them will inevitably be telling the truth, they won’t all be experts. Learn to be discerning about who you listen to and always bear in mind that no matter how knowledgeable they are, they could still be completely wrong. Learn to trust your instincts on these things.

(4) You Should See Forex Trading as a Hobby
No. Take your investments seriously and view your trading as a part time job, not a hobby. It might not be able to make you rich, but Forex trading can make you better off and alternatively, can make you poor very quickly too. Take it seriously.

Alex is a freelance journalist and financial blogger. He loves to write about football and jazz but spends most of his days writing about mortgages, stocks and shares and payday loans.

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