Managing Your Time Wisely

While the Forex market is open 24 hours daily, it doesn’t mean that action happens all the time! Each trader should learn when to trade and when not to trade.

Here’s a quick cheat sheet of the best and worst times to trade.

Best Times to Trade:

• When two sessions are overlapping of course.
• Times when major news events come out will potentially spark some volatility and directional movements. Make sure you bookmark the Market Hours cheat sheet to take note of the Opening and Closing times.
• The European session tends to be the busiest out of the three.
• The middle of the week typically shows the most movement.

Worst Times to Trade:

• Sundays – Markets are closed, and you too should be relaxing!
• Fridays – liquidity dies down during the latter part of the U.S. session.
• Holidays – everybody is taking a break, and you should be too!
• Major news events – you don’t want to get whipsawed!
• Any major sporting events! - NHL/NBA Finals, Superbowl means a lot to some people!

How To Make Money Trading Forex

Trading currencies in the Foreign Exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you wont have a problem adjusting to Forex.

The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.