where to trade currencies, page-4

Just thought to throw this in here for a bit of knowledge for some;




The Best Kept Secret of Trading; The 10:00 am Rule
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Forex trading is not only about using appropriate strategies, but also about proper timing. Yes, it’s true that the Forex market is open 24 hours a day but it isn’t always active. This means that while you can make money when the market is going up or down, you’ll find it difficult to make a profit if the market isn’t moving at all. Hence, it is important that you learn about the different market hours as well as the best times of the day and the best days of the week to trade.

The Forex market has 3 major trading sessions: the Tokyo Session, the London Session and the US Session. Between each session is a period when two sessions are open at the same time. For example, both the Tokyo and London sessions are open between 3 AM -4 AM EST while the London and US markets are open from 8AM -12 PM EST. These, then are the busiest time for trading since traders who wish to purchase currency from another continent can do so.

Of all the trading markets, London usually shows the most movement because it involves a number of countries such as UK, EU member countries and many others. The US market comes next. Hence, it is during the intersection between these two markets which usually provides the greatest return for trading.

Many Forex expert traders believe that the best time to trade is actually at 10 AM since this is the period when the London market is getting ready to close and more buyers and sellers have started moving to participate in the US market. During this time, currencies experience volatility as buyers and sellers bid for prices and turn out last minute wagers before the London market closes. The drastic change in market prices during this period allows traders to create profit from these movements.

The best day of the week to trade

There are also days in the week when markets show the most movement. According to researches by expert traders, the most movement in the 4 major pairs (EUR/USD, GBP/USD, USD/CHF, USD/JPY) is experienced in the middle of the week, from Tuesday to Wednesday. Fridays are also busy but it is best to tra............


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