Let’s face it: the Forex market is open for business 24 hours a day, 5 days a week. That’s impressive. And daunting. With so many potential trading hours, how can you be sure to pick the best times to trade? If you’re new to Forex, that answer might not be immediately obvious. But once you get into the swing of things, you’ll find there are certain times of day when certain trade setups work better than others. The trick is figuring out which ones they are. Working smarter, not harder is an important part of any job. If you workout your mind as much as your body at the gym, you’ll increase your effectiveness and reduce your stress simultaneously! This article will give you all the tips necessary to become a pro when it comes to trading during peak hours in the FX markets.
The Best Forex Trading Hours
If you’ve chosen the right broker, and you’re investing in the right type of account, you can trade anytime you want. But some hours are better than others. Why is that? It all comes down to supply and demand. Like any other commodity, Forex has times of higher demand and times of lower demand. The best times to trade will depend on what you’re trading. If you’re day trading, the best times will be completely different from the best times to trade if you’re scalping.
Morning Hours: 6 am to 11 am EST
Early morning hours will vary from broker to broker, but most often will be between 6 am and 11 am EST. This is the time when the Asian markets are opening. If you’re day trading, this is the best time to execute your trades because the market will be moving quickly. If you’re scalping, this may or may not be optimal. That’s because the market will be moving quickly, yes, but you’ll be closing your trades before the Asian market closes which will slow things down.
Afternoon Hours: 11 am to 4 pm EST
11 am to 4 pm EST is the time when the Asian markets have closed, the European markets have opened, and the American markets are in the afternoon slump. European volume is at its peak, and American volume is at its lowest. This is a good time to day trade, but it’s not ideal for scalping.
Evening Hours: 4 pm to 8 pm EST
4 pm to 8 pm EST is when the American markets are ending their trading day, the Asian markets are closing, and the European markets are in their evening peak. European volume is at its peak, and American volume is at its lowest. This is a good time to day trade, and it’s also an ideal time for scalping.
Nighttime Hours: 8 pm till the end of the day
The final period is from 8 pm until the end of the day. This is when the Asian markets are closing, the European markets are in the middle of their night, and the American market is at its lowest volume. This is a good time to day trade, but it’s not ideal for scalping.
Conclusion
Trading hours are when the most trading volume is taking place. If you want to have the best chance of executing your trading strategy successfully, you’ll want to make sure you’re trading during these hours. However, you should keep in mind that trading will be more challenging during these times. This is because there will be more competition, and volatility may be higher. In the end, it all comes down to your strategy and how you manage your risk. So make sure you’re aware of the best Forex trading hours and how they might affect you.
Checkout a complete Forex Guide For Beginners and The Forex Trading Scams You Need To Be Aware Of.