When is the Best Time to Trade Forex?

It’s time to learn When is the Best Time to Trade Forex.

Over the last few years, I have taught thousands of trades from all over the world with all different styles and habits. One of the biggest issues with newer traders I have noticed is that they don’t have any plan in place for when to be looking for trades, and when not to be. This is why we will be covering When is the Best Time to Trade Forex in this article.

Best Time to Trade Forex: Market Information

The Forex Market is the largest financial market in the world- by a long shot. It trumps all other markets in terms of sheer size and volume. Aside from it being the largest market in the world, it is also unique in the sense that it is open to trade 24 hours a day, 5 days a week. This presents endless opportunities for people from all over the world to take part in this one-of-a-kind financial market. No matter how busy of a schedule you have, you can find the time to analyze and trade the markets to fit your busy schedule- day or night. The important thing is knowing when is the Best Time to Trade Forex.

However, with this endless opportunity comes a constant struggle for the psychology of any Forex trader. Not only does it encourage a terrible habit known as “over-trading”, it also allows traders to enter the market during times they should not be doing so. Although the markets are open 24 hours a day (which is awesome), you should not be looking to trade them 24 hours of the day.

In my Full Online Forex Training Course, I explain how crucial it is to have set trading hours each day and limit yourself to only enter trades within this time-frame. This set window of trading hours should be strategically determined around your lifestyle, as well as the optimum times to be trading Forex.

Best Time to Trade Forex: 3 Optimum Times

The optimum times I teach my students to trade revolve around these 3 times:

  1. London Market Open– London is the unofficial center of Forex trading. It makes up a majority of the trading volume and makes for one of the best times to be active as a trader.
  2. US Market Open– Although the US (mainly NYC and Chicago) is the Stock Market capital of the world, it is also a huge Forex Trading Market. The period of the US Market Open (8am EST) makes for my favorite trading time of the day. From 8am-11am, the US and European markets are open and trading the Forex Markets at the same time. This layover creates a tremendous amount of volatility and liquidity to provide excellent trading conditions.
  3. Around News Events– The only time I recommend trading the Forex Markets outside of the two sessions above is during a fundamental news event. These news events create a lot of volatility and liquidity, providing us with great trading opportunities. News events occur at all different times in Forex as there are markets all over the world in all different time zones. This gives traders a LOT of homework to keep up with what is going on in the world of macroeconomics. However, it also presents us with trading opportunities at flexible times throughout the day. One of my favorite trading styles is to catch breakout trades around news events that drive price in that currency. I teach my exact methods and news trading strategies in my Full Online Forex Training Course as well. What you need to be careful of with this method of trading is that some events are way too volatile and should be avoided altogether. A good example of a news event we want to avoid comes the first Friday of every month in the US, NFP (unemployment report).

The 24-hour-a-day Forex Market gives us so much opportunity and benefits, but we must not let its pitfalls cripple our trading. Looking for trades during times of day where liquidity is low and volatility isn’t there can be very devastating to traders. This is a very simple concept to build into your trading plan and can create tremendous results in your trading. Simply knowing when to be looking for trades and when not to can eliminate countless losing trades from your trading.

If you would like more education and guidance to learn how to do this, I have designed an entire course to teach you how to trade Forex. It will teach you everything you need to learn, from the ground up, while having my personal guidance all along the way. Click here to learn more and take our Full Online Forex Training Course.