The answer to the question," Is there a best time to trade the forex?" depends on your objectives.
If you are trading the forex based on earning a higher rate of interest then Wednesdays are the best day to trade the forex. You earn
triple the interest on your currency trades on Wednesdays.
The Forex market, as you know, is a 24 hour market.
Forex trading hours, trading time:
New York opens 8:00 am to 5:00 pm EST
Tokyo opens 7:00 pm to 4:00 am EST
Sydney opens 5:00 pm to 2:00 am EST
London opens 3:00 am to 12:00 noon EST
As you can see there is an overlap in trading times.
New York and London - 8:00 am - 12:00 noon EST
Sydney / Tokyo - 7:00 pm - 2:00 am EST
London /Tokyo - 3:00 am - 4:00am EST
As trading pairs overlap, they become more active. If you are day trading the forex these would be the times of greatest
volatility. For those of you that day trade this is where you will see the greatest swing in the markets. You have the highest potential for
both profit and loss during these times.
Remember that the forex market is unpredictable. As we have just seen the stock market ( February- March 2007) can affect the volatility
of the forex market, as well as other world factors..
Have your money and trading rules in mind before entering into any trade. Trade a percentage of your account that you
are comfortable with and that will not leave you with a margin call if the market does take a major dip.
Have your exit strategies in mind before entering your trades as well. Don't be greedy. There are fortunes to be made in
the Forex market but fortunes have also been lost here.
The key to success in this or any trading market is to know what level of risk that you are comfortable with and to trade with
your money rules in mind and not your ego.
Trade to make a profit not to get high or pat yourself on the back for your own brilliance at the occasional slam dunk.
Pick a Trading Strategy and Stick with it. No strategy will work if you switch from one "guru" to the next every other day.
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* All information on this site is for informational purposes only and should not be construed as advice. Do your own due diligence on all
trades and only trade with money that you are comfortable losing.
