One of the main reasons for the failure of the traders is that they usually trade at the wrong time. New traders wanting to learn how to enhance the speed, so start trading in small periods of time (1-minute or 5-minute chart). Then they become frustrated because they trade at the wrong time frame. After long time trying different periods of time, I found the 1-hour chart. This period is longer, but not too long, trade signal is less, but not too little. Now I have more time to analyze the market and I do not feel more pressure, other hand, I have a friend who would never have traded in a 1-hour period. He is simply too slow. He prefers trading on the 15-minute chart. It still gives him enough time (but not too much) to make decisions based on your trading plan.
Also, another friend can not understand how we can trade the 1-hour chart, because he thinks it’s too fast! He traded on the daily, weekly and monthly charts. His name is Warren Buffet, perhaps you know him. You are probably already wondering what is the right time frame for you. Well, if you follow it, it depends on your ability. You have to feel ‘comfortable’ ‘with the time period when you are traded. It will feel some pressure or a feeling of frustration when you trade, because the real money in the game. But you should not feel that way because the events are occurring too quickly, so it is difficult to make decisions, or so slowly that you frustrate. When you started trading, I was able to keep a time frame. I started with a 15-minute graph, and a 5-minute, and 1-hour, daily and 4-hour chart.
You must choose which is the best period for you! You also have to take into account the amount of capital you are trading. Shorter period of time allows you to make better use of the margin and have fewer constraints loss. Increased periods require a larger account, so that you can deal with market trends without facing a margin call. When you finally decide for the desired time period only begins trading
The best time to trade:
- When two overlapping markets
- European weather is ‘busier’ than the other two (Asia, North American markets US and Canada)
- In the middle of the week are usually the largest movement
The worst time to trade:
- Fridays
- Sundays
- When the holiday
- When significant news/events
- During the popular series
Now we know that the market is busiest when the London open, but there are certain days of the week when the markets move at all be increased. Below is an overview of the average pip movement for four major currency pairs for each day of the week. You can see that in the middle of the week, the biggest movement in all four major currency pairs. Friday is usually the ‘crowd’ to 17 hours, and then the market is quite ” dead ” until it closes at 22.00. This means that we only work a half day on Friday. The weekend always starts early! So on the basis of these three simple information learned when most tumultuous market. It is the best time to trade, because it gives us a better chance for success. If you feel bad and want to lose money, there is no time for that.
Forex currency trading
| EUR/USD | GBP/USD | USD/CHF | USD/JPY | |
| Sunday | 15 | 20 | 15 | 10 |
| Monday | 95 | 140 | 60 | 50 |
| Tuesday | 60 | 100 | 85 | 40 |
| Wednesday | 450 | 530 | 430 | 200 |
| Thursday | 270 | 300 | 230 | 140 |
| Friday | 220 | 240 | 160 | 130 |
average of the number of pips 4 major currency pairs depending on the day of the week
It can see price movement for currency pair EUR/USD at the date 16th -20th March. On Sunday it was 15 pips, 95 pips on Monday, 60 pips on Tuesday, 450 pips on Wednesday, 270 pips on Thursday and 220 pips on Friday.
For currency pair GBP/USD at the date 16th -20th March. On Sunday it was 20pips, 140 pips on Monday, 100 pips on Tuesday, 530 pips on Wednesday, 300 pips on Thursday and 240 pips on Friday.
For currency pair USD/CHF at the date 16th -20th March. On Sunday it was 15 pips, 60pips on Monday, 85 pips on Tuesday, 430 pips on Wednesday, 230 pips on Thursday and 160 pips on Friday.
For currency pair USD/JPY at the date 16th -20th March. On Sunday it was 10 pips, 50 pips on Monday, 40 pips on Tuesday, 200 pips on Wednesday, 140 pips on Thursday and 130 pips on Friday.
What we can be concluded? The biggest volatility was on Wednesday during the FOMC Meeting minutes. Currency pair GBP/USD was the most volatile. It follows EUR/USD. The next was USD/CHF. Minimum Volatility was at a currency pair USDJPY.
It is showed hourly chart for currency pair EUR/USD. The best days were on Wednesday and on Thursday for forex trading. It can be seen retracement on EUR/USD. There was almost 1000 pips on fluctuations. It was almost 720 pips fluctuations in the exchange rate EUR/USD for two days. GBP/USD was 830 pips. USD/CHF was 660 pips and USD/JPY was only 340 pips.
It’s never good to have someone imposes his opinion. Instead, it is desirable to make themselves their own decisions when it comes to your trading. If you really do not want to trade during the action in the market when trading volume is highest and when you will easily make money, then you can trade at the time that I will mention below. I guarantee you that you will have far more problems.
Friday: Friday is very unpredictable. This is a good day for trading if you want to lose all the profits that you scarcely have gained throughout the week.
Sunday: A slight displacements of the currency on the day. By trading on this day, you will begin your week with negative pips.
Holidays: Banks are closed, which means that a very small volume of trading. Holidays are great for trading if you would rather lose your money than take a day off and enjoy the other beautiful things in life.
Announcements News: Nobody knows in which direction to go in price when the news came out. You can lose a fortune during the news announcement if you do not know what you’re doing. Price behaves like a drunk monkey during this time and is extremely unpredictable.
What to do if you can not trade during the largest share of the market? If you live in a ” strange ” time zone, or work all day, then you probably can not sit in front of computers during the operation of the market. If you recognize yourself, then you have several options for you:
Move to a better time zone. We recommend London. Of course, you have to pack and start a whole new life, but at least you will be able to trade at the right time.
Trade at work (be sure to have a “real” job ready in the event that you are the boss sneak up behind you and asks what you’re doing). Also we recommend you to become a master trader. This is the ultimate solution, because you basically your employer pays you while you trade. You pay as you earn – you understand?
Become a swing or position trader. As a swing/position trader will not have to constantly monitor the market and you can check or take a look when you get back from work.
Trade in the second period, even if not the biggest action. If you can not trade during the London or the US, only trade during Tokyo. However, you should be disciplined and trade so every day. You will learn how the market moves and can develop strategies that are specific to that market.
I think that 3 and 4 of the best options, but again, the choice is yours.
Even if you can not trade, it is a good chart throughout the entire period. While watching the movement of prices in the action, you can actually see the real story on the currency. Watching live chart is different than watching historical charts. Even if you can not trade in the market, imagine in no time to get into the position while watching live charts. Practice is the way to perfection, and the more you practice, the better you will be. The choice is yours. Here it is. I gave you all the information when the best time for trading. All you need to do now is decide whether you prefer to trade when it is easier to make money, or would you prefer to accomplish the hard way. Trader knows how to trade during the week. It was explained the best and the worst days for forex trading. It is needed to avoid trading the news and speeches because the market can be reacted in opposite direction and trades can be lost.
Best Time To Trade Forex Video Tutorial