Trading Sessions

What is the Best Time of the Day to Trade Currencies?

Currency trading is very interesting because you can either do it as a hobby or as a business.  It usually begins as a hobby but starts to gain more attention when one sees the possible profit that can be made from it. It is important to know the best time of the day to trade any pair of currencies.

There is this notion that Forex trading is a twenty-four hours business, as such you can trade any hour anytime and make as much profit as you can. This is true but with some limitations. Let’s look at it from the ordinary market perspective. Most traders at the local market prefer to go to companies and warehouses in the morning to buy at wholesale prices and come back to sell to retailers or sell directly to consumers later in the day. It therefore, means that they will leave home early perhaps before the sun rises or before consumers begin to come to the market. The similarity with currency trading is that at the opening hours of the market as well as at height of daily Forex market, volatility is very high which gives traders the chances of buying and selling currency pairs with high-profit margin.

 When the market is closing, volatility reduces so much that trade orders may no longer be filled hence you experience losses. It is therefore, necessary to know when to get into the market to take much profit and when to get out of the market to avoid loss of the profit that was made earlier in the day.

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 What is the Best Time of the Day to Trade?

 Let us use Eastern Time (EST) as our reference time. London market session opens 3.0 a.m. EST that is 8.0 a.m. GMT. London session goes on to closing time when it overlaps with the New York session opening time. Heavy trading runs through this overlapping period resulting in high volatility. You can make as much money as you desire this period.

 However, inexperienced traders may not realize the importance of this timing especially when to stop trading, hence they go on trading for the simple reason that Forex Trading is a 24-hour business. 

New York session ends at about 4.0 p. m. EST about 9.00 p.m. GMT when the Sydney session opens. The Sydney session overlaps the Tokyo session. These overlapping periods are the best times to trade and make a good profit. This does not ignore the fact that you can as well take profit at the opening time up to the  middle of each individual trading session.

So take your time to do more research on the best times to trade and make a good profit.

Forex Trading Sessions in Eastern Time (New York time) in Hours

1   2   3   4    5    6   7    8    9   10   11   12    13   14   15   16  17    18    19   20   21   22   23   24

            

Open  LONDON             Close

Open NEW YORK             Close

Close

Open    SYDNEY Session

Session Close

Open   TOKYO

Observe the overlapping time between London Session with New York Session  from 8 a.m.- 12 p.m. EST. Trading currencies peaks at this time, you can effectively focus to trade actively at this time, make some good profit and exit your trade before it gets to reversals as it is bound to happen.

The same thing can be done in the overlapping time between Sydney Session and Tokyo Session.

What currency pairs are favourably disposed to earn you some good money at what time and what sessions?