Trading in foreign exchange is profitable but not the easiest thing to do. There are more than a few things which come into the picture to ensure profits. Forex timings, however have nothing to do with getting your timing right for profits. Instead, it’s more about having an in-depth know-how about how this market works and your part to play in the whole system.
5 Tips to getting your Forex Timings right:
1. Know the relations between sessions
You have a fair idea about the sessions obviously. You know the currency majorities working for them. What matters more though is to know how to use these basics along with the typically strong trading periods of their overlapping sessions.
Just as currency pairs are relative to other pairs with common currencies, sessions show the strongest patterns when they overlap. These sessions show the highest price action fluctuations because they share strong investment patterns as per currency pairs.
2. Match your Pair and Sessions
To continue, if you’re thinking about trading with a specific currency pair, you need to know which is the best session to do it. There is no hard and fast rule pinning down a specific currency pair to a certain typical trading session. Instead, you’re again looking at overlapping sessions at the end of the day.
So if you’re trading with EUR USD, you may believe that it has more to do with the North American session, but it does not. Matter of fact, highest EUR USD transactions fall right in the European to North American sessions; overlapping sessions that is.
3. Scalp when it’s worth scalping
You love scalping or day trading or whatever you call it as long as it works out that is. But if you want to get the best out of scalping, you need to integrate your trading setup with some serious add-ons.
First things first, avoid signals. Leave the signal part of it all to yourself. Secondly, try bringing in a couple of custom technical tools into the picture. Custom tools are better than your average tool from just one point of view. They simply integrate multiple algorithms inside one single analytical output. Thing is then; you’re covering more than one analytical pointer with on one go, i.e. you’re saving lots of time. While scalping, every single second matter.
4. Use the Right Indicators at the Right Time while Scalping
To continue, you’re obviously not going to use something like a MACD when the market’s stagnant. What you need to do instead is look for transaction volumes to gauge where the transactions are going to go. Using the right indicators at the right time means that you’re following the right sequential pattern for analysis.
5. Go Electronic
Electronic trading is the future of foreign exchange. If you want to make the best of Forex, just go ahead with an electronic broker. They can ensure the lowest spreads with the least possible time-lapse.
These are just the simplest tips on how to get the best out of Forex timings. That’s just what trading is all about - getting the best out of this market from one way or the other.
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.