Best Times to Trade
Forex trading can be quite a challenge, and trading at the right time is absolutely vital to being successful. There are certain times where the Forex market will be completely dead, and others where a high amount of activity make trading quite popular and lucrative. Learning when to sit down and try to FX trade is key to being successful.
Catching Open Markets
The ideal time to sit down and start trading in the Forex market is when trade volume rises to the highest level it is going to hit for the day. This high volume will send the market volatility through the roof, which increases the chance that a trader will end up making money. Since the Forex market handles currency from all over the world, choosing the best few hours to trade is not necessarily as easy as it sounds. The true good times to trade will generally depend on which currency pairs the trader is looking at.
Catching The Two Best Markets
The two most powerful Forex trading markets are currently the European market and the US market. Ideally, a trader needs to catch the time when both of these markets are active in order to gain access to the best trades one can get. The overlap time for both the US market and the European market happens from 8:00 am to 12:00 pm eastern standard time. During these four hours, both the US market and the European market are highly active, which leads to the greatest volume and volatility one will find in a day.
Opening Up More Options
There are options out there for those who are busy during the most busy Forex trading times that will still yield good results. Since the European market opens at 2:00 am EST, anything past then should be possible for trading in European currency. The US market runs from 8:00 am until 5:00 pm EST, so making some lucrative trades later than 12:00 pm EST is possible in the US market. Ideally, get as close to the four hour window when both markets are open as possible.