The Best Forex Trading Hours – Myths and Facts
July 7th, 2009
Before this article starts, a precedent has to be established first and foremost. The precedent is one of the features of the market that you should be familiar with now, especially so if you are a trader. The Forex market is rather unique in many ways, including the fact that it a 24 hours daily trade that closes only on the weekends.
When it starts is Eastern Standard Time, 2300 on a Sunday and it closes midnight on a Friday. When one market closes, another opens up and vice versa – this is what gives Forex its ability to last as it travels from one region to another within 1 trading day. Even when you are sleeping, there is still half the world that is still currently trading with breakneck speed and if you happen to suffer from insomnia, you can even access these markets anytime you want and make some decent money as well.
In relation to that, the other thing that you should note of are the regions of Forex market – it starts in London most of the time and ends in New York, passing by places like Singapore and Tokyo.
Because of this, there may be times where there will either be a brief lull or a brief spike in activity, because volume of trade in different regions and markets may differ. Highlight of some of the major centres of Forex trade would be New Zealand, Sydney, Wellington, Moscow, Frankfurt, Moscow and Hong Kong – along with the three major ones that already have been mentioned. One of the myths of trading hours is that there is one perfect trading time where you should be paying attention to.
If that was the case, 70% of the total Forex investor population would be losing out simply because they were asleep and market psychology would drastically change because many of the investors would be then employing the use of managed accounts.
But there is some truth when looking at the busiest peaks of the market, usually when the British, European and American markets are opened. Market volume during these times are usually the greatest but that does not mean that you should be jumping at the chance to get your hands on the trade game at this point of time. Higher volume increases the chances of you making more money, but at the same time, it increases your competition level too.
In conclusion, it all depends of which currency pair are you trading and most comfortable with. This way, you will be able to determine which trading hours are suited best to your investment patterns. It is about time that the myths and facts are both dispelled and told in a no-nonsense, straightforward method. Now that you have a clearer idea of trading , you will have higher chances of making good money.
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