When it comes to trading the markets, whether it is the stock or the currency markets, there is a lot of information floating around. Many people seem to think that they can give some hidden secret or some revolutionary new piece of software to help new traders strike it rich. The problem is these programs and secrets hardly ever work. However, there are a few common tips a person can acquire to help facilitate them being successful in currency trading. One issue is knowing the best forex trading hours.
Since the Forex market is a 24 hour a day market, there is plenty of time to trade, but the real question is is there any particular time when it is better to trade than any other time during the day.
The actual answer is pretty easy. As much of the world's Forex trading takes place in Europe and the U.S. which makes the hours between 8 a.m. to 3 p.m. the best times to trade currency. However one might ask why these are the best forex trading hours.
As with most issues about the stock market or other trading markets, the idea of reward and risk is always a potent mixture and a recipe for success. When people trade more, there is more movement in the market. More movement and more volatility mean prices will tend to shift, often in a very significant way. What this means is that while the largest amount of currency trading is taking place, the best amount of profits can be made.
Trading at other hours of the day, when volumes are lower, might mean that a profitable trade wouldn't be as lucrative. However, as the Asian markets ramp up, often volume will go up. Not as much as when Europe and the U.S., but volume does tend to go up a little.
While knowing the best forex trading hours is not a sure-fire way to get rich fast, it certainly helps to put you, as a trader, in the right position to be rich in a matter of a few profitable trades. You may want to watch the trades over different shifts as you are learning what the best forex trading hours are and determine if you see a trend during a specified period yourself.
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