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What is a ''good'' time to trade forex ?

Discussion in 'Forex' started by TheCapitalManager, May 17, 2014.

  1. TheCapitalManager

    TheCapitalManager Registered

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    Here we will be going to take a look what are the best months of the year and the best days of the week to trade forex. The foreign exchange market is open 24 hour for 5 and a half (Sunday) days a week around the whole year. But there are certain times when it is more attractive to trade.

    Best Months to Trade

    The worst months for trading are certainly the summer months of June (second half), July and especially August. Many institutional traders in Europe and North America are on vacation which results in less trading activity in general, drying up of trading volume and smaller swings in currency pairs.

    If you trade during the summer months you will have to take into consideration that prices will be range-bound for a long time and get rather unpredictable. Starting in September usually after Labor Day in the US trading activity picks up again as traders return to their desks. Then the best three months of the year follow until volume dries up again in the second half of December as traders take extended Christmas holidays. From January until May it is also very good to trade as we usually witness good swings during these months.

    Just be very cautious during the summer period and during the second half of December. What normally works in normal conditions might not work during these low volatility months.

    [​IMG]

    Best Days to Trade

    While the Forex market already opens on Sunday evening Central European Time (Monday morning in New Zealand and Sydney) it is not recommended to start your trading week on Sunday already. Unless there was major news over the weekend there wont be much going on as volumes and volatility are usually at an extreme low on Sunday evening.

    Monday can also be very difficult to trade as many traders especially in Europe wait for economic news and macro data before they put up new positions. Trading ranges on Monday are usually smaller on average compared with the other days of the week. Tuesday, Wednesday and Thursday are considered to be the best days of the week for forex trading. These three days are usually the days which get the most action. If you want to trade only three days a week and spend the rest of the week at the beach you should chose these three days.

    The first half of Friday is also pretty decent for trading but please be aware that volumes dry up in the second half of the day as traders head for the weekend. Be also aware of the fact that on Friday trends which have persisted for the whole week can be reversed on Fridays as traders close their positions to avoid the weekend risk. You should be especially cautious on the first Friday of each month as this is the day when the non-farm payroll report from the US is due. This data usually leads to erratic swings in all major currency pairs, especially in the dollar related pairs.

    If there is a holiday in more than one major financial center such as Easter Monday or Christmas we usually also witness a drying up of volumes and sometimes erratic swings. Be especially careful on these major holidays as most of the big traders are off their desks. If you avoid these low volatility days you will usually diminish potential frustration and boost your performance.
     
  2. uncle gober

    uncle gober Registered

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    very useful information. I own the type of traders who use scalping. therefore I often do scalping the Asian session where price movements are relatively stable in a small range, especially for the pair EUR / USD. I do this because it uses a low spreads and commissions given by my broker
     
  3. abory

    abory Registered

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    because I chose the American trading session for me the right time to trade is when the market is opened at 19.00. if we have a good trading skills then we can make a profit from forex if we know when the market opens. try trade in RealTrade with $ 5 welcome bonus
     
  4. orni308

    orni308 Registered

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    well once you gain experience and know market well , i think you earn at any time. but still there are some points to be cosidered.
     
  5. Gaban

    Gaban Registered

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    for that, we need a demo account, with a demo account we can get a chance to gain trading experience. we must seriously when trading in a demo account, because then we can get good results
     
  6. Gaban

    Gaban Registered

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    The best time to trade is when the market is open and when we are not emotion, the emotion forex trading this is a thing that is not recommended for trading, if we are trading with emotions will only end up with a loss
     
  7. gacha

    gacha Registered

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    perhaps the best time to boost your pips gain are during news event, you may found many article said dont trade during news event, it's a discourage words comes from brokers company who cant 'handle' market price volatility during news event. while actually we can got more pips by price action strategies only, but first you have to ensure that your brokers trading condition able to handle such event, by long time research i've found my account with armada markets are best fit during news event trading activity. typically no spread improvement during news release, and the entry order are accept accordingly.
     
  8. Gaban

    Gaban Registered

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    Monday to Friday is a good time to trade. do not trade when the market holidays. and a good time to trade when we're not emotional. emotions will only give a bad influence on our trading
     
  9. orni308

    orni308 Registered

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    Its very important to intrepret the news or the way market is going to take that news, news have the very initial impact on the market and one can cash in that time.
     
  10. uncle gober

    uncle gober Registered

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    in my opinion, the best time to trade is when the market overlap between london to new york. because of news that has a considerable influence on the release would normally during these hours so that we can follow the trend for profits
     
  11. Haydar Ali

    Haydar Ali Registered

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    Yes, you should be open your new trade in safe entry points. Because, Forex maker always try to make you fool by proving wring indication. So, making accurate market analysis is the best way to open new trade in right position. By the way, now I can make regular profit by trading. Because, I am following daily market analysis that given expert team of my regulated trading broker GCI Financial. Even, this trading broker also provides free Forex signal that helps me very much to find the important points of market. So, I know the right point for trading. But, I never open my trade without using stop loss and take profit
     
  12. Robert Kristofer

    Robert Kristofer Registered

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    I usually avoid trading on Friday and Monday and prefer the Asian trading session hours.
     
  13. Haydar Ali

    Haydar Ali Registered

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    As a new Forex trader its really though job for me to find good entry points. Because, I am unable to predict the market condition. But, still I am making consistent money by live trading. Because, I follow the analysis and strategy that given by Fx certified expert traders of TradingBnks trading broker. On the other hand, Im learning actual technique of good trading analysis from this effective trading analysis. Though, Forex market is open for 24 hours but good entry points are not available. Therefore, knowledgeable Forex traders can find them from their trading experience.
     
  14. Umama Rana

    Umama Rana Registered

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    Traders fixed their trading time according to their trading capability. As a professional trader, I like to trade in news time, although it is very difficult to trade in that time. Because, I get all important and financial indicators that drive the market from my live economic calendar that I am getting from my trading place MxTrade. By using this data book, I am becoming a knowledgeable trade with fundamentally strong. So, it is very easy o trade in news time with profit. Therefore, I am also getting very competitive low spread from my trading platform mxtrade that is very helpful to trade at any times.
     
  15. Roisin Mulvaney

    Roisin Mulvaney Registered

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    Timing does not matter much if we have skills and to be able to get the skills level right we need regular practice and luckily, I am able to do that very easily with support of FMbinary.com broker with their free demo account option. It is very rare in Binary Option industry to get free demo, but here I can easily get it which is seriously helpful and allows me to be working smoothly and get perfect idea of when to do trading and when to avoid.
     
  16. Umama Rana

    Umama Rana Registered

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    Actually, traders select their trading time in order to their trading experience. even though, it is very much difficult to trade for all time, but, I am very lucky to select MXTrade as my trading platform where at all times I am able to trade due to only one pip narrowest trading spread. By means of this narrowest trading spread, I can make profit by using any kind of trading strategy.
     
  17. binaryowner

    binaryowner Registered

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    Best time for trading is morning, I guess, when your mind is clear markets are full of liquditity (my morning is NY and London cross) I like to make profit trading with Hotforx in morning the spend the rest of the day running my offline business.
     
  18. Umama Rana

    Umama Rana Registered

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    As a professional trader, I like to trade during news in spite of too much difficulty. For predicting the real movement of this market during news, I at all times use live economic calendar that I am getting from my trading broker MXTrade. By using this financial datebook, I can gather all important information on the financial health of various economics which is very supportive to make profit with certainly during news.
     
  19. Umama Rana

    Umama Rana Registered

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    As a professional trader, I like to trade during news in spite of too much difficulty. For predicting the real movement of this market during news, I at all times use live economic calendar that I am getting from my trading broker MXTrade. By using this financial datebook, I can gather all important information on the financial health of various economics which is very supportive to make profit with certainly during news.
     
  20. ForexMartTrader

    ForexMartTrader Registered

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    The good time to trade forex is during those forex market sessions when there are appreciable price movements. In this regard, the London session and the New York session are usually good time to trade forex.
     

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