Learn to Determine the Best Forex Trading Time
One of the important things to learn for the success of the forex learning process is to determine the right trading time. You certainly already know that the forex market runs 24 hours a day and 5 days a week. So you can trade all day. It is important to realize that the intensity of your trading can be disastrous, because the more transactions you make, the greater your chances of loss. Damn it again if accompanied by emotion because of wanting revenge. This will be the fastest way to go bankrupt. Never mind that you are still a beginner, a trader trader can close out. Indeed there is no prohibition for you to trade all day. But don’t get it because you want to be able to quickly make a big profit instead of losing all the money. Therefore you need to work around this by managing your forex trading time .
There are 3 things you must understand in learning to determine the best forex trading time.
1. You must know the world forex trading schedule
What causes forex trading is very unique because of the trading schedule. Opened at 05.00 WIB on Monday and closed at 05.00 WIB on Saturday. Keep in mind, not all day is the right day for trading. The best time for forex trading is when you are active. If all four forex markets open simultaneously, there will be a very active trade. And this means that there will be high price fluctuations in some pairs. If only one forex market is open, currency pairs tend to be stuck at a tight pips distance, usually around 30 pips. If there are two markets that open at once, there is usually a wider price movement of around 70 pips. Especially if accompanied by a big news release.
If you don’t know when the trading schedule for the four markets is opened, here are a few reviews.
– Sydney Forex Market
Open at 04.00 WIB, close at 12.00 WIB. The Sydney market is the starting point of the trade opening. And is the smallest market of several large markets. If observed, with the opening of the Sydney market there will be some actions taken by individual traders or companies that try to stabilize price movements due to the trading effect that ended on Friday the previous week.
– Tokyo Forex Market
Open at 06.00 WIB, close at 14.00 WIB. Or it can be referred to as the Asian market considering that Tokyo is a trading center in Asia, taking a trade portion of around 21% of the total transactions of the day. The USD / JPY currency pair is the best pair to watch when the Tokyo market opens.Because of the influence of the Bank of Japan which can have a big effect on Yen movement.
– London Forex Market
Open at 2:00 p.m., closing at 10:00 p.m. The London market, called the European market, accounts for the largest portion of almost 36% of total trade. The European market is the most crowded, where thousands of world-class big businessmen make forex trading transactions. The London market has the effect of large currency fluctuations due to the Bank of England, which sets interest rates and monetary policy from GBP. No wonder the forex trend sometimes comes from London.
– New York Forex Market
Open at 7:00 p.m., closing at 3:00 p.m. the next day. The New York Market is the second largest forex market in the world. Because 90% of the US dollar is involved in all trade. New York accounts for 19% of total trade. Mutations that occur on the New York Stock Exchange (NYSE), can have a direct and strong impact on dollar movements. When a company joins the market and the acquisition process is complete, the dollar can immediately rise or fall dramatically.
2. Overlap during trading hours
The above has been mentioned that the best time for forex trading is when there is a very active market movement. The meaning here, the best time is when there is overlap (overlap). Overlaps provide more opportunities for trading because the price range is higher. If you pay attention to the trading schedule above, there are two overlaps.
– Sydney – Tokyo
Occurs from 06.00 WIB until 12.00 WIB. Although the volatility is not very active, overlaps that occur in the Sydney and Tokyo markets still offer a good opportunity for trading with higher pips fluctuations. The ideal currency pair to observe is EUR / JPY, because the two currencies influence each other.
– US (New York) – London
Occurs from 7:00 p.m. to 10:00 p.m. WIB. When the two forex markets were opened, there was a large overlap. More than 70% of global trade occurred at that time, because the US Dollar and Euro were the most popular currencies traded. So, if you are looking for the right time with high volatility for trading, this is the right time.
3. Pay attention to the timing of world news releases
Now, after you know about market trading schedules and overlaps that occur in the market, you can already determine the best time for forex trading. But there is still one thing that is important and you need to understand, namely the time of news release. A big news, can have a strong effect on market movements that normally run slowly. When there is a major news release relating to economic data, especially when it is against the predictions of market movements, the forex market will rise rapidly or plunge quickly in seconds. But because there are a lot of news release schedules that can be every day, and can affect all currencies, that doesn’t mean you have to pay attention to all the news. You just have to prioritize what news if you want to be a reference to always be observed and other news you observe occasionally.
These are things that need to be considered in determining the best time for forex trading. Have you got an idea to determine your own trading time? Or still confused? In essence, you must pay attention to the timing of market overlaps and economic news releases. As a trader, of course you want to get or increase profits. And in the process of learning forex , you must have a goal to be able to trade when the market is volatile, while still being aware of existing economic news releases. That way, either as a part time or a full team of traders, you can manage the forex trading schedule that you can do with a calm mind and not easily panic because you are confused about how to act when you see volatile market movements. Remember, opportunities will always be there, if you want to understand and pay attention to the market. Congratulations on learning forex ! 🙂