Forex Trading: The Best Hours to Trade
If you want to earn extra cash aside from the cash you earn from your regular job or your business, maybe it’s time to you to enter the financial market. One kind of financial market that made a lot of people earn a lot of money in the Forex market.
Aside from the fact that the Forex market can allow you to earn a lot of money, you should also know that Forex is the largest and the most liquid financial market in the world with trade exchanges that amount up to trillions of dollars each day.
Forex also operates 24 hours a day and therefore making it the most liquid market in the world.
However, Forex is also a very risky market. Besides the fact that it generated a lot of people to become rich, it also made a lot of people lose large amounts of money. Therefore, you should consider that you should think twice before entering this financial market. You should have enough knowledge and skills before you enter this market. Part of the knowledge is that you should know the best time you should enter this very liquid and very large market.
Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts. Perhaps, you also know one or two strategies when trading in the Forex market. However, you should also consider the fact that because the Forex market operates 24 hours a day, you need to know when you should trade.
Every minute in the Forex market counts. One minute you notice a currency is increasing in value, the next you notice that the same kind of currency you noticed a minute ago is decreasing in value. This is why you should consider the fact that the Forex market is a very dynamic market with lots of price oscillations.
Minute-by-minute events are very important for you to be successful. Because of this feature that is found in the Forex market, you, as a Forex trader, can enter the market several times a day. This will allow you to earn some profits after every number of trades you do and perhaps maybe even lose one if you made the wrong trading decision.
Firstly, you have to remember that the Forex market beings on Sunday at 5 PM EST to Friday at 4 PM EST then it beings again at 5 PM EST. Trading begins in Forex in New Zealand next at Australia followed by Asia, in the Middle East, Europe and ends in America. The major markets in Forex are London, Tokyo, and New York with trading activities the heaviest when major markets overlap.
Based on the times, you will see that there will always be someone anywhere in the world who is buying and selling currencies. You will see that when one market closes, another market opens. Trading in the Forex market is 24 hours a day.
Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market, and the US market open at the same time.
These are the trading hours in the Forex market you have to trade in, to get the highest possible trades. These is tTheseours that are also the most profitable.
Here are the open market times that you can use as reference:
• New York – 8 am to 4 pm EST
• London – 2 am to 12nn EST
• Great Britain – 3 am to 11 am EST
• Tokyo – 8 pm to 4 am EST
• Australia – 7 pm to 3 am EST
If you look at the schedule and study it, you will see that there are two instances where two of the major markets overlap on trading hours. These are between 2 am and 4 am EST with Asian and European markets and 8 am to 12 pm EST with European and North American.
These are the things you should remember when trading in the Forex market. It is not only important that you know how to trade and know some strategies on Forex trading, But, you should also know when is the best time to trade in this very large and very liquid market.
If you follow all these, you can be sure that you can earn a potentially higher profit than at other trading times.