The Forex Market is open 24 hours a day and initially this is exciting to new traders who enjoy the freedom of being able to trade at any hour. However, success in this market depends significantly on when you decide to trade. Picking the right hours to do business will greatly increase your earnings. Understanding when the best trading hours are will help you get the most out of your time.
The best Forex trading hours to take advantage of this market is when there is a lot of activity. Trading during the hours when the market is most active will allow you to take advantage of the active currency moving ensuring higher profits. If you find yourself logged on when the market is slow and calm, it is best to just come back later and not waste your time.
The Forex Market trading hours are as follows: New York opens at 8:00 am to 5:00 pm EST (EDT), Tokyo opens at 7:00 pm to 4:00 am EST (EDT), Sydney opens at 5:00 pm to 2:00 am EST (EDT), and London opens at 3:00 am to 12:00 noon EST (EDT). There are specific times when these sessions overlap such as New York and London-8:00am-12:00 noon EST, Sydney / Tokyo-7:00pm -2:00am EST, and London / Tokyo-3:00 am-4:00am EST. During these overlapping hours traders will experience a higher volume of activity and the best chances to succeed in the foreign currency exchange market.
There is software available to make it easier to monitor the trading sessions from anywhere in the world. Traders can download programs that can be aligned to Eastern Standard Time and also programs aligned with most North American and European county time zones as well. These programs allow traders to follow market sessions with ease.
There is some good advice for new traders to take advantage of. First, it is always best to do thorough analysis and to study the market before doing any trades. By doing these things first you are taking gamble out trading and ensuring a greater chance of success. It is also advisable to spend at least 2 months practicing the demo before investing any real money into this market. 90 percent of beginners fail because they lack the experience, knowledge, and discipline. Taking advantage of the demo programs available will help you hone these necessary skills. Another good piece of advice is to never risk more than 2 to 3 percent of your total trading account. It is best to keep your emotions down and trade in a calm state of mind. Remember that the difference between successful and unsuccessful traders is the ability to weather through down markets. Doing some basic research and taking the time to hone your skills will ensure a greater chance of success trading on the Forex Market.