Forex Trading Times

Knowing when the best Forex trading times are can make a huge difference in how successful you are as a trader. Although Forex brokers are open 24/5, it doesn't mean that you can just trade at any time of day and get the same results. Here are a few things to consider about trading the market and choosing the best Forex trading hours to do so.

It's a Living Thing

One of the best ways to think about the market is that it is a living thing. Just like you, the market has good times and bad times. There's times of the day, when you're probably pretty crabby. In fact, you may just want to punch the next guy that comes up to you right in the mouth. At times, this is exactly how the market "feels." If you put your money into it, the market's going to punch you right in the jaw and take your cash.

Then there are other times of the day when all you want to do is be left alone. You just want to sit there and veg out for a few minutes. The market feels the same way. These are the times of day that the market doesn't have much action going on and its just kind of flat-lining.

Finally, there are some other Forex trading times when the market is a friendly son of a gun. He wants to shake your hand and shoot the breeze about that whopper of a fish he caught over the weekend. It's during those times, he'll allow you to come in, have a look around and take some profit home with you.

Would you use the same trading strategy during the times that the market wants to punch you in the face and during the times when the market is friendly? Would you expect to get a lot done when the market is just sitting there staring at the TV screen watching reruns of Spongebob? Of course not! You wait until the time is right for your particular trading strategy.

Getting in On the Action

If you use a trading strategy that involves trading when the action is hot, you may want to get involved when the London and New York sessions overlap. Towards the end of the day in London, the US is just opening for business. During this window of about four hours, the market is full of traders. These can be some of the best Forex market hours if you like action and movement.

Chillin'

On the other hand, if you use a system that likes a more calm, stable market, you'll want to trade during some other Forex trading times. For example, after the US session has closed for the evening and before the Asian and Australian sessions open, the market is usually pretty calm. For some scalpers, this can be a good time to pick up a few pips here and there.

Currency Specific

Some trading strategies may require you to get involved when a particular currency pair is active. In many cases, the domestic currency of the trading session that's taking place will be a little more active. For example, during the Asian session, the Japanese Yen tends to move a little more. If your trading strategy is like this, refer to our Forex market hours chart to see when all the sessions take place.

Putting it All Together

With that being said, the market is never exactly the same twice. While sometimes, the market acts in a predictable pattern, other times, it's as crazy as Charlie Sheen after drinking a quart of tiger blood. Practice your strategies on a demo first and get to know the market. Get a feel for how he operates. Once you feel comfortable with how he works, accept his invitation to shoot the breeze over drinks. Just be aware that, in some cases, you'll wake up with a pretty nasty hangover the next morning.


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