When Is The Best Moment To Start Trading?
When it comes to trading on Forex market, the first step is the most difficult one. Even people who have researched this market and understand how the currencies work, hesitate to invest in it. They want to find the right time, look for the best opportunity, find positions that would lead to profits before they make the decision to invest. So what’s the best time to take the plunge and make the investment? Here are some suggestions that can help.
You won’t get a true understanding of this platform just by reading articles online and watching few videos. You need to invest and handle currencies in real time to truly grasp how to make profits or cut losses. When you read articles and observe the market, you have the benefit of hindsight and will consider that to make your decisions. You won’t be able to do this when you’re actively trading on the platform.
You should use demo trading platforms provided by Forex brokers to understand how the market works in real time. These platforms allow you to trade with digital money so you don’t have to risk anything as you practice and learn.
Understand the Market Hours
The currency market runs 24 hours a day for 5 days a week, so it can be a little confusing. The market is open from 6pm EST on Sunday to 5pm on Friday and is open to all traders in the world. It is essentially divided into several different markets based on the time and the most influential of them are listed below. The times are listed in hours EST.
- The New York Market (8am to 5pm EST, 1pm to 10pm GMT) – This market has a big impact on the US dollar value so most of the significant shifts in the currency market happen when this market is active. Traders watch the New York Market closely because the US dollar is involved in 90% of all trade transactions.
- The Sydney Market (5pm to 2am EST, 10pm to 7am GMT ) – The official trading day starts in Sydney so all of the initial market speculations and shifts happen in this time frame. Sydney also influences trading trends after the weekend break. Traders and financial institutions will look into this market to stabilize their transactions from Friday.
- The Tokyo Market (7pm to 4am EST, 00am to 9am GMT) – Tokyo has a strong influence on the Asian market so if you invest in yen or other currencies influenced by the Asian market, you should trade during Tokyo hours.
- The London Market (3am to 12pm EST, 8am to 5pm GMT) – London is the biggest currency market in the world and handles 34% of the global trading. This market has a big impact on currency patterns and fluctuations.
With practice and real time observations, you can determine which time is the best for you to take the plunge and start investing.
If you’re uncertain about investing in this market, consider a financial advisor. You can keep track of different currencies, markets, get reports on their performance, and follow experienced traders. You can copy the moves and decisions of these traders to earn a profit until you develop your own instincts for this market.
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