Everyone knows that Forex trading is tricky and there are two things you need to be successful in this business. First, you have to be really really lucky and the second thing you need is the ability to make a trade at the right time. Yes, you read it right and what we are trying to tell you here is that timing always matter in Forex trading and the sooner you realize, the better it will be for your business.
For those who don’t know, the best time to trade is during the market hours of the specific content you are about to make a trade with. Most of the traders out there don’t make enough profit or suffer from a loss mainly because they are trading at the wrong time of the day. On the other hand, if you ask a successful trader about his secret to success, he will probably tell you that he owns a forex market hour clock because yes, it’s that important!
You see, Forex has a total of 15 exchanges all around the world that are open from Monday till Friday. All of these exchanges have their own unique trading timings. But when it comes to the most important windows, know that there are four of them;
- London: 3 AM to 12 PM (noon)
- New York: 8 AM to 5 PM
- Singapore: 3 PM to 12 AM (midnight)
- Tokyo: 7 PM to 4 AM
You need to keep a track of these four windows and no matter what currency you are dealing with, you need to be active and you need to follow the time frames we just mentioned above. The most favorable time, however, is from 8 AM till noon overlap because that’s the time when both the New York and the London exchanges are open.
What You Need To Be Careful Of?
Yes, we have been saying this time and again that timings matter when it comes to Forex trading but what you shouldn’t forget is that you need to take every step with caution because just because you are trading on the right time, doesn’t mean that you will be lucky too. So, trade the currencies after doing some math in a way that you don’t end up with the loss after you’ve made the trade.
Another secret to Forex trading is that when you are trading European currencies, make sure to trade them in the “off hours” because that’s when you will be able to earn all the profit. Yes, you read it right and this strategy is known as the range-trading strategy. By off hours we are referring you to the time of 2 pm-6 am ET (7 pm to 11 am UK time). This is what we have observed over all these years and it wouldn’t be wrong to say that range trading is the reason behind the success of a lot of traders out there. So, yes, you should also try this strategy on to see some real time results.
Yes, you need to consider the forex trading hours when you are making a trade and you need an hour clock for that for sure that tells you what’s the time in the particular country you are making a trade with. You need to be active all the time and most importantly, you need to make sure that you aren’t rushing things up because again, the time matters but what matters the most is your luck. So, make some wise trades at the right time and we assure you that you will see some profit coming to you soon!