When I first started trading forex I used a system that told me the best time of day to trade forex. It was not a very accurate prediction, and I lost a lot of money in the beginning because it was too simple. I found out that there were actually more variables involved than what I originally thought.
I learned later that most forex traders lose money because they do not have an effective and reliable trading strategy. It is very important that you have a trading strategy and you should not expect to make money if you do not have one.
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Best times to trade
Some forex traders like to tell me that the best times to trade for are: Friday and Sunday. I suppose that if someone told you that the best times to invest in stocks and bonds were: Wednesday and Saturday, then you might consider them to be true.
But, it is more accurate to say that the best times to trade for are: Whenever the market is open. In other words, you should always be open to get into trades at any time of the day.
Look at three factors
In order to determine the best times to trade the currency market, you need to look at three factors. The first factor is called volatility. Volatility measures the level of variation in the currency market. This is why you should get into trades when the currency market is at its highest volatility level. This will definitely increase your risk, but the profit potential can be extremely high as well.
The second factor is what is known as the support levels in the forex market. When the support levels are high, this means that the currencies are strong. This is when you should start looking for good trading opportunities. However, when the support levels are lower, this means that the currencies have become weak and you should stay away from trading them. This can be the best time to trade, but only during a recovery period when the currency market is strong.
Finally, the third factor that affects the best times to trade for is your own trading strategy. It is best to stick with a trading strategy that uses basic technical analysis to predict trends in the market. This will help you increase your chances of making a profit, while decreasing the risks.
Market conditions changes
Most scalpers have a short memory. Their strategies are designed to be very flexible and are meant to be adjusted as the market conditions change. Unfortunately, some scalpers have a tendency to stick to their strategies and don’t allow for changes to occur. These scalpers often find themselves out of the core game before others realize that the time to trade forex has changed.
To avoid becoming one of these scalpers, it is best to adopt a flexible trading strategy. You should learn to adapt to the market conditions and make the necessary adjustments as they occur.
The Admiral Markets
Some traders think that the best time to trade forex is on the weekend. They believe that trading on Saturday and Sunday is slower than the afternoon and morning hours. While this may be true to some extent, it is also true that there are more active traders during the evening hours.
In addition, many traders believe that the big buyers are more likely to be in the market at the end of the business day. If you have more people buying than selling, it is the best time of day to trade forex.
