Queconomics Guide to your economic growth
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Queconomics – The problem of choosing the best time to trade forex is often complained about by new traders. Their intention was just to try and make trading a side job, but their sleeping hours became a mess.
In addition, some feel burdened because the release of impactful news often appears when traders do not monitor the market. If you are a full-time trader who doesn’t have to go to the office early in the morning, it probably won’t be a big problem.
But if you still have to work from 8 a.m., trading by staying up late is risky to your overall health and lifestyle. For this reason, you must have a way of choosing the best time to trade. Actually, forex trading is an activity that can be tailored to each individual.
If your partner prefers to stay up late while trading, you don’t have to force yourself to follow his bedtime. The most important thing is how to get profit and avoid loss.
Best Time to Trade Forex According to Your Daily Activities
The first factor you should consider when choosing the best forex trading time is your daily routine. If you are a part-time trader who is still busy with work activities during office hours, then of course the best forex trading time is before or after your working hours.
The same applies if you are still a student or still in college. In principle, trade when you have free time. Do not let the specified best forex trading time overlap with daily activities, because trading requires optimal focus so that the results are also maximized.
Usually, the London and New York overlapping sessions that occur at 7 to 10 pm are chosen as the best time to trade forex by Indonesian part-time traders.
Apart from taking place outside office hours, the trading session is the busiest and busiest time in the forex market. Major forex pairs involving the Euro, US Dollar, Pound sterling, etc. will experience a significant increase in range during this period.
As long as the markets overlap, most traders are active. More forex traders means the market becomes more volatile. Although volatility tends to be feared by investors, it creates price movements.
If only one forex market is open, prices can stagnate. This stagnation creates fewer trades and fewer opportunities to buy and sell currencies.
On the other hand, you can more freely determine the best forex trading time if you work as a full-time trader. Because you are no longer bound by other activities, you can also choose the best forex trading time based on the two important criteria below.
Best Time to Trade Forex based on the Trading System
What’s the point of having a reliable trading system that has been tested if it can’t be applied at the best time to trade forex? Long-term trading systems are generally not time-bound, but short-term trading systems are more sensitive to day trading sessions.
Let’s say you use the EUR / USD pair with a news trading strategy, then the best forex trading time is in the London and New York sessions. Such a trading system will obviously not be optimal if it is used in the Sydney or Tokyo sessions.
Matching the best forex trading time with the system is actually not difficult. You simply see what trading pairs and strategies you use.
The Tokyo session, for example, is often a favorite of users of range trading strategies because prices tend to move quietly within the boundaries of support and resistance.
Meanwhile, those who apply breakout trading are usually prepared to place pending orders at the end of the Tokyo session, to take advantage of the strong moves in the early London session.
Even though trading time matters, you still have to strategize and pay close attention to the market. Armed with the knowledge of the best time to trade forex and good strategy, you can get the maximum profit.