Determine the best time to Trade Forex

By: Dr Joshua Geralds Posted on: 2008-10-09 ** Print Article ** ** Copy Article ** - Category Feed

Article Summary: The times of most activity are during a cross over of two markets. For instance the Asian close is the London open and the London close is the US open. A lot of traders are active at that time and you can be sure that there is a lot of movement in prices! But is that the best time for YOU to trade Forex?

When is the best time to trade? The Forex market is open for trading 24 hours a day for 5 and 1/2 days a week.
A key factor to a successful trade is entering the market when there is a lot of activity. Without enough buyers and sellers in the market the chance of you getting a good trade becomes slimmer.
The timing has to be right since otherwise you may lose your big chance at making a profit. The market can be volatile at times some only learn about determining when to trade though experience, but others have strategies and analysis that help them make decisions. It is in your best interest to actually include the time you will trade into your trading plan. This builds discipline and that is always good for traders and for our pockets.

The times of most activity are during a cross over of two markets. For instance the Asian close is the London open and the London close is the US open. A lot of traders are active at that time and you can be sure that there is a lot of movement in prices!
But is that the best time for YOU to trade Forex?
Each currency pair has its quirks and its own character. To determine the best time for you to trade, you can use charts and graphs to study past data.
What you can do is focus on the past price action of the currency pair. Go back months if you have to! Look at the high and the lows and look at when these peaks and troughs occur. A chart is the ideal tool for showing any trends or cycles of the currency pair. If you see that the trend is a down trend then your set ups during your trading time would be to go short.

Now that you have determined the trend and the best position to take, you are poised to make your trade. But before you plunge in and trade, you might want to consider reading up on the news for the day. A news break can throw all your carefully planned strategy out of the window. A sudden change in policy like an interest rate cut would heavily affect the way the currency will react throughout the day. I have had times when the news totally changed the way the trend was going! After all that careful planning and information gathering the last thing you want on your plate is a trend reversal. There are a lot of sources that you can refer to. One of the best is the internet forums, do a quick search on the internet and you will find that many forums have calendars that tell you when a major news break will be coming along. I would suggest that unless you trade the news, try to keep out of a trade when the news breaks. So read up and then determine the best time for you to make a profitable trade.

Article Source: http://www.upublish.info

About the Author:
Dr Joshua Geralds
Dr. Joshua Geralds is a successful investment specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com

Keywords: Forex, trading+plan, forex+trading, money+management, currency+trading, investments, retirement

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