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What is the best time of day to trade the Forex Currency Market?

That is a good question in a market that runs 24/6! It is apparent at first that you could trade whenever you want to trade, but this is deceptive.

The key factors to determine your best time to trade Forex are these:
When do you want to trade the FX? What time do you have available? Do you have a “job” you have to go to in addition to your Forex Currency Market trading?

Where on the planet do you live? If you live on the East Coast of the US you will have to get up in the middle of your night to trade the European or British currency openings. If you live on the West Coast of the US you will have to get up at about 4:00 AM to be able to trade the New York open.

What does your body do best with in terms of sleep schedule? It might be best to time your trading to your biological clock. Are you a “night owl”? Do you have trouble waking up early? Don’t try to trade when you are still wiping the sleep out of your eyes or you may also wipe out your account.

What currencies are you going to trade and when do their Forex Currency markets open? There is often anticipating movement ahead of the market open, and for a few hours after the opening, and then it can go relatively flat for the remainder of the day. You may need to be there for the opening action if you want to get the best trades.

When does your FX Trading Plan and Strategy work best? You may need to back test your FX Trading Strategy to find this out. Not all the Forex Currency Market techniques work all the time in the markets.

When are the economic reports and news scheduled for your currency(s) of choice? This will change daily and can be looked up on many Forex Currency Market economic calendars available on the internet. Some FX Trading Strategies are based completely on the Forex Currency Market news announcements, so no news = no trade. But most the Forex Currency Market strategies are affected by news and you must be aware of it.

These considerations are basic to deciding on what Forex Currency Market trading strategy to chose and which will really work for you.

Best,
Phil

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