Timing is crucial for almost everything in life, so trading forex is not an exception. Currency trading is unique because of its hours of operation. The week begins at 6 p.m. EST on Sunday and runs until 5 p.m. on Friday, and not all hours of the day are equally good for trading. The round-the-clock opportunity gives the perfect setting for forex traders who are driven to making profits. This is possible because of the existence of different time zones in which the money markets across the different parts of the world operate. The Far East markets open first in a day, New Zealand, Australia and Asia, then Europe and, finally, North America.
The most successful Forex traders know when to trade Forex and make a profit out of it. The majority of experienced Forex traders usually recommend that you should aim to trade in the middle of the week. That would be on Tuesdays, Wednesdays, and Thursdays. Those are the busiest days and there are more opportunities for a profit due to the volatility of the market during those times. Again, this doesn’t mean you should spend your entire Tuesday or Wednesday trading on the market.
Forex traders are aware of the major trading centers and the fact that they are scattered around in different time zones. Surely, it is up to you to decide when to trade Forex, but the general assumption (and advice by the experienced Forex traders) is to aim for trading when two sessions are overlapping. You have to know the exact timing when that happens in the time zone you live in and try to trade right then. It is not as complicated as it sounds – you simply have to organize yourself and your available trading time properly. Make a separate trading calendar and mark the top days to trade Forex alongside the time schedule and the sessions you plan on trading in for that day.
As for the worst time to trade Forex, the first comes late Sunday and half of Monday. At this period of time, everyone is still slow, sleepy and or re-assessing/forecasting the market direction ahead of the trading week. Nobody trades on the weekend, and you should not. The other worst period for Forex trading includes major news releases, whether it is financial reports, economic data, or political updates. Such major news can have an unexpected and unpredictable effect on the Forex market. Such releases can be easily tracked in Forex economic calendar. In case you are not following this news, you are risking your funds.
Trading is a game of mental discipline. Those who can keep their emotions under control come out ahead. But no matter how disciplined and controlled you become, there will always be ‘those days’. Maybe you aren’t feeling well or didn’t get a good night’s sleep. It could also be that you’re busy with other tasks which means your thoughts are elsewhere for the day. Another dangerous scenario would be a losing streak. If you have lost the last three or four trades, chances are your emotions are on high alert. Whatever the case, if you aren’t feeling up to the task of trading, then don’t!
