The Best and Worst Times to Trade Forex

Timing is critical to almost everything in life, so forex trading is no exception. Forex trading is unique because of its opening hours. The week starts at 6 p.m. m. EST on Sunday and lasts until 5 p.m. on Friday, and not all times of the day are equally good for trading. The 24-hour opportunity provides the perfect setting for forex traders looking to make a profit. This is possible due to the existence of different time zones in which money markets operate in different parts of the world. The Far East markets open first in one day, New Zealand, Australia and Asia, then Europe and finally North America.

The most successful forex traders know when to trade and profit from forex. Most experienced Forex traders generally recommend that you try to trade in the middle of the week. That would be Tuesday, Wednesday, and Thursday. These are the busiest days and there are more profit opportunities during these times due to market volatility. Again, this doesn't mean that you should spend all Tuesday or Wednesday trading the market.

Forex traders are aware of the large trading centers and the fact that they are scattered across different time zones. It's certainly up to you to decide when to trade Forex, but the common assumption (and the advice of experienced Forex traders) is to try to trade when two sessions overlap. You need to know the exact time that takes place in the time zone you live in and try to trade at that time. It's not as complicated as it sounds - all you have to do is get organized and use your available business time wisely. Create a separate trading calendar and mark the best days for forex trading along with the schedule and sessions you want to trade that day.

As for the worst time to trade Forex, the first comes on Sunday evening and mid-Monday. In this time frame, everyone is still slow, sleepy, or re-estimating/predicting the direction of the market ahead of the trading week. Nobody works at the weekend. , and it shouldn't. The other worst time to trade forex is when there is a major news release, whether it's a financial report, economic data, or political update. This important news can have unexpected and unpredictable effects on the forex market. Such releases can be easily followed in the forex economic calendar. If you don't follow these messages, you are risking your money.

Trading is a game of mental discipline. Those who manage to control their emotions take the lead. But no matter how disciplined and controlled you become, there will always be “those days”. Maybe you don't feel well or sleep well at night. You may also be busy with other activities, which means your thoughts are elsewhere for the day. Another dangerous scenario would be a losing streak. If you missed the last three or four trades, your emotions are likely to be on high alert. Either way, if you don't feel up to the task of trading, don't!