Queconomics Guide to your economic growth
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Queconomics – Knowing the best time to trade forex can help you develop a strategy to win in trading. Trading is an activity that requires careful strategy and planning.
Unlike gambling, forex trading must be based on basic forex knowledge. Without a good knowledge of forex, then you can lose your money in an instant.
Forex trading takes place within 24 hours from Monday to Saturday morning. Therefore, this activity can be done anytime and anywhere. Even so, you need to know that there are certain times where your trading can generate more profit.
Understanding trading times that can provide more profit opportunities is something that you must know as a trader. Therefore, first, understand the division of trading sessions in forex.
Trading Session to Determine the Best Time to Trade Forex
The first session is the Asian session which is based on several financial centers, namely Tokyo, Sydney, Hong Kong, Singapore, and Shanghai. Economic data released by Japan, Australia, and China will greatly affect trading in this session.
The most frequently traded currencies in this session are the Australian Dollar, the Japanese Yen, and the New Zealand Dollar.
The second session is Europe with the two most important financial centers, namely Frankfurt and London. Economic data released by the UK and also countries in the European Union are the market movers in this session.
You can find various currencies traded in this session. This is influenced by London’s status as a world financial center that has been recognized since the Middle Ages.
However, the currency pairs that experienced the most change were those containing the pound and the euro. This session is very crowded, especially when it overlaps with the American session, which is between 19.00 WIB to 22.00 WIB.
Lastly was the American session with the financial center in New York. This session was dominated by data releases from the United States and greatly influenced the movement of all traded currencies.
This is because all major pairs traded contain USD. Although sometimes the USD weakens in the Asian session, it will strengthen again in the American session.
Utilizing Overlap Time for Profit
You can take advantage of the time overlap that occurs between the European session and the American session because it’s the best time to trade forex.
At these hours, the price movement is at a high position and opens wide trading opportunities so that traders can profit in a short time.
However, basically, each session can generate quite a lot of profit if the trader applies the right strategy. Therefore, you can match the trading time to your own risk character and trading style.
You need to understand that knowing the right trading time must be supported by your trading skills. As a trader who wants to be successful, you need to combine your knowledge of strategy and the best time to trade forex.