First things first, to hit the nail right on the head, it depends completely on you. You as in your trading habits, investments, mentality, strategies and overall habit of trading in foreign exchange. So, if you thought that this has something to do with a secret strategy or whatever that falls in that line, you’re wrong. What is the best time to trade Forex market? Read on!
Fixing a Trading Session:
As a beginner, you need to understand that profiting from foreign exchange is directly relative to your analysis of past data and present trends to come up with a proper forecast. Before understanding how the market is going to come up in this future, you need a proper idea on the market.
If you’ve heard of a saying that Forex never sleeps, it never really does. Even when individual traders stay away from it throughout the Sundays, intra-bank transactions still take place.
Coming back to the point of it though, trading amounts in this market is directly relative to certain trading sessions.
As for the highest amount of transactions, this happens in the overlapping. To give an example, consider the American and European overlap. This is that time of the day when Forex traders across both American and European zones partake in trading. Roughly twice the number of traders.
If you’re thinking what does this have to do with your question of what is the best time to trade Forex market, well, it’s simple. Higher transactions mean higher fluctuations. More the market fluctuates, more you’ll get your profit-making opportunities.
That’s what it all comes down to for you, knowing the best times to invest in this market.
Going Long or Scalping:
Now this is a very basic question, which is better or in simpler terms, is scalping more profitable than swing trading or going longer? Or is the picture the other way around?
As again, it depends completely on you. Matter of fact, it comes down to primarily to the currency you’re using and the one you’re about to trade it with.
If you’re trading with USD, you’re better off scalping with USD EUR. If however you’re using CHF, go long. Understand the basics of these currencies.
USD has the widest circulation so it’s the best base currency you can use. EUR comes second in total circulation amounts which is just why this pair is perfect for short burst of trades and profits. That is scalping. Even more, if you do see a proper pattern over the past couple of days, you’re better off going with a proper swing trading strategy.
CHF comes up as one of the most stable currencies around. So you won’t either way get this currency to show up big market movements. Pair this up with USD and invest for the future.
Thing is, get a proper idea on how this market before going forward with an investment in it. Hope you do get the answer you’re looking for. If you do have something more to say about what is the best time to trade Forex market, do comment below.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.