Know When is the Best Forex Trading. Determining the right trading time is one of the important things to learn for success in learning forex. You already know that the forex market is open five days a week and 24 hours a day.
Remember that the number of transactions you make can be fatal; the more transactions you make, the more likely you are to lose money. Unfortunately, again, when accompanied by feelings of anger for revenge.
This would be the fastest method for bankruptcy. You are a beginner, and even an experienced trader can lose everything. You can trade daily, but not because you want to make a big profit and lose it all quickly. As a result, you have to anticipate it by managing your forex trading time.
1. You must understand the global forex trading calendar.
Forex trading is very different because of the trading schedule. It opens every Monday at 05.00 WIB and closes every Saturday at 05.00.
Keep in mind that not every day is a good time to trade. The best time to trade forex is when you are active. There can be very active trading if all four forex markets open simultaneously.
This means that some currency pairs will experience large price fluctuations. If only one forex market is open, currency pairs get stuck within a tight pip gap, usually around 30 pips.
However, if two forex markets are open simultaneously, there will usually be a larger price movement, approximately 70 pips. Moreover, when combined with important news.
If you need to know when the trading schedule for the four markets starts, this quick review will help you find out.
Forex Markets in London
The European market, also known as the London market, accounts for almost 36% of all trading and opens at 14.00. Thousands of big-name entrepreneurs from all over the world carry out forex trading transactions on the European market at the busiest times.
As the Bank of England sets interest rates and the GBP monetary policy, the London market is highly affected by currency changes. It's not surprising that forex trends sometimes originate in the London market.
Sydney Forex Market
The Sydney market is the first place trading begins, opening at 04.00 WIB and closing at 12.00 WIB. If you look at it, you will see individual traders or companies trying to stabilize the price after the effects of the previous week's Friday trading.
Forex Market in New York
They open at 19.00 and close at 03.00 the next day. The second largest forex market in the world is the New York market. Because the United States is involved in ninety percent of all trade, New York is responsible for 19 percent.
When a company joins the market and the acquisition process is complete, the movement of the dollar can be directly and significantly affected by changes on the New York Stock Exchange (NYSE).
Tokyo currency market
As an Asian market, it opens at 06.00 and closes at 14.00. This is because Tokyo is the trading center of Asia and is responsible for 21% of the day's total transactions.
When the Tokyo market opens, the best currency pair is USD/JPY due to the strength of the Bank of Japan, which can greatly affect the movement of the Yen.
2. Trading time overlap
As previously mentioned, the best time to trade in the foreign exchange market is when the market is most active. When there is an overlap, it is the best time.
Due to their larger price range, overlaps offer greater trading opportunities. There are two overlaps if you pay attention to the trading schedule above.
Sydney to Tokyo
It lasts from 06.00 to 12.00, and although it is not very active, the overlap in the Sydney and Tokyo markets still provides a good opportunity to trade with larger fluctuations in pips.
Since the two currencies influence each other, EUR/JPY is the perfect currency pair to watch.
United States (New York) to London
The two forex markets are open from 19.00 to 22.00, resulting in significant overlap. Since the main currencies traded are the US Dollar and Euro, more than 70% of global trade takes place at that time.
Therefore, if you have been looking for the right time to trade during high volatility, now is the right time.
3. Watch the global news clock
Once you understand market schedules and overlaps, you can determine the best time to trade forex. However, you must understand one important thing: when the news is released.
A big piece of news can change an otherwise slow market. When important economic news comes out, especially contrary to market predictions, the forex market will go up or down in seconds.
But you can pay attention to only some of the news because a lot of news appears daily and affects all the money. You only need to prioritize news that will be a reference to pay attention to other news now and then.
These things must be considered when determining the best time to trade in the foreign exchange market. Do you already know how to find the best time to trade? Do you still need clarification?
You must pay attention to when market overlap occurs and economic news releases occur. As a trader, you want to earn or increase profits.
In the process of learning forex, you should set goals to be able to trade when the market is unstable and stay alert for the latest economic news releases.
In this way, whether you are a part-time or full-time trader, you can manage your forex trading schedule with peace of mind and not panic easily because you are confused about what to do when market movements change.
Remember that there will always be opportunities if you are willing to understand and pay attention to the market. Good luck in learning forex!