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“ What are the best time zones to trade forex?”
Great question Matty and it couldn’t have come at a better time. My name is Kiana Danial with Invest Diva and I’m gonna show you the currency pair’s psychology in different times of the day, on the forex dance floor.
Unlike any other charted market, the forex market is open for currency pairs’ dancing 24 hours a day from 6 PM on Sunday in New York, to 4 PM on Friday. Dividing every trading day into 4 major sessions, each day starts at Sydney market open which is 5 PM to 2 AM Eastern Standard Time, moves into the Asian session with Tokyo’s market open at 7 PM to 4 AM, and just when the Asian market participants are about to close shop, their European counterparts are just beginning their day with London session from 3 AM to noon. The final session starts in New York from 8 AM to just before 5 PM when the New York Stock Exchange closes.
There is more fluctuation on the forex dance floor when more than one of the four markets are open simultaneously. And of course not all hours and all days are created equal for profitable forex trading.
Finding the best time to trade largely depends on what type of a trader you are and what currency pairs you are looking to trade. Short term traders who open and exit positions throughout the day will find more opportunities when the volatility in specific currency pairs is higher. Long term trader should rather look for the best day to enter/ exit positions as the specific hours wouldn’t really matter in a long-term market analysis.
Best Days to Trade
Long term traders including myself gotta look at different factors when it comes to analyzing the markets. Research and my own experience shows that best days to enter a long term position are Tuesday, Wednesdays and Thursdays. You don’t want to jump in a trade right at the beginning of the trading week because the currency pairs are just waking up, haven’t really found their way on the forex dance floor and not much economic data is out yet. Fridays can also be tricky because with the weekend just ahead, the currency pairs sometime kick off the next week with an unpredicted jump which can kick you out of your trade. However, Fridays are still better than Sundays and Mondays as long as you loosen up your stops and limit orders before the end of the trading week. This also applies to traders who hold their traders for several weeks.
One last nugget of wisdom, although the forex market is open 24 hours a day, don’t feel obligated to trade all the sessions. As the commercial goes:
Sleep is a Beautiful Thing.
A good night sleep is mandatory for those of you who trade responsibly and check all points of theInvest Diva Diamond Analysis before opening a position. If you don’t know what I’m talking about, that only means you should either buy my book, the “Invest Diva’s Guide to Making Money in Forex” or enroll in our education program on Invest Diva.
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As your Invest Diva I’m always here to help. Book your private lesson with me today or enroll in our video education course. Definitely, share this video with your friends who are also interested in investing their hard-earned cash.
