For most forex traders, the time of the day plays a very important role. Forex traders probably share the same problem when it comes to the best time to trade forex. For most, the best time to trade is Asian session hours of trading. Studies show that the trader losses and profit could significantly vary by the time of each day. There are the so-called Range Traders and their own failures and success mainly depend on the conditions of the market itself.
The trading style would definitely mean that most of the traders have a trouble of being successful in forex and this is all because they are primarily trading during wrong time of the day. Most successful traders have the same time to trade which they considered as the best time to trade forex. Most of them trade during early European or Asian and late US trading session and that is essentially starting from 2 PM up to 6 AM in the Western Time or New York, which is also 7 starting from 7 PM up to 11 AM in the UK time.
The statistics of profitability that successful forex traders have definitely vary on the day-to-day basis. There are times when they are most likely to have a stronger performance lineup with the low-volatility hours of trading. The best time to trade forex would for traders are during Asian session of trading and the number of traders who trade during these hours proves this true. The hours of the day, really matter and good to know that there are different ways for traders to trade effectively without experiencing problems and issues.
Even though the forex trade market is open 24 hours every day, there are still few hours, which are considered as the best time to trade forex. There are times when the traders to leap into market, but there are also times to stay away. Most traders may agree that the best time for them to trade forex is within first 3 up to 5 hours of the sessions most especially if the fundamental analysis mainly points on new calendars for economy are released.
The trend trading is considered as cost and time effective because they do not mainly take number of trades. The trends in currency market are somehow related to the economy of the country, which makes the forex traders last for a period of weeks, months, and even a year.
Think deeply on the time frames that are stated above. Finding the best time frame to trade forex is very essential in order for the traders to have large gains that they are aiming for. On the other hand, different time frames are suited on different types of traders. Therefore, if you are going to choose the right one for you, there is always a need to know your own abilities for you to become more successful. This would give you tons of benefits and would help you decide to continue what you have started.
Best Days to Trade Forex
The foreign exchange market works 7 days a week and 24 hours a day and this is virtually impossible for a person to have a track every single day on the forex market. Thus, it is very essential for a trader to understand which is the best day to trade Forex so he or she can expect to have a high unpredictability session hence he or she is able to execute his or her trading tactics on the most efficient way.
So now, what is the best day to trade Forex? If you want the volatility, then it is better straightforward. When it comes to the volatility in the industry of Forex market, it has two act of play. The first one is the start of the week wherein there is a very slow progress of activity coming from the late Sunday until Monday, then rising on Tuesday.
On the other hand, there is a little decrease of the trading volatility by Wednesday, ahead of another boost the next day. Thus, Thursday has the highest scores when it comes to volatility that is nearly followed by Friday. The volatility will end suddenly around 17:00 GMT since the market will go dormant on the weekend.
Sunday to Monday
Whenever it’s Monday morning in Sydney and New Zealand, it is still Sunday night in Europe. Considering that there are many activities on the economy in these days, there is still a less amount of chance that the Forex market will create a move that will adjust on the new supplies and demand realities by the time it opens. Thus, such days isn’t the best day to trade Forex for the reason there is no much economic activity occurring.
Midweek
By Tuesday, the trading rapidly picks up the currency and pace market experience of the first spike in the activity trading within the week. By contrast, the volatility of the market in Tuesday is around 120-130% than Monday. And this is the reason why Tuesday got the best days to trade in Forex market.
By Wednesday, there is a change on the volatility. The activity in the market decrease among of what it was on Tuesday and Monday and this occur because of “swaps”. Swaps can be considered as the overnight interest compensated to traders who have their positions among daily sessions. This is why Thursday is the champion when it comes to volatility. If you are after the volatility, then bear in mind that Thursdays are the best day to trade Forex.
