Monday, 30 November 2009

Best Forex Trading Hours to Make a Profit

If you want to make a huge profit at the Forex market, then you have to learn the best Forex trading hours when 2 or 3 major market areas overlap.

You have to remember that the Forex market never sleeps. At any given point within a 24-hour period, traders are opening and closing transactions. The rule of thumb therefore is that you can enter the market anytime you want and enjoy profits from your open trades.

But what you should be looking for are the times when the volume of transaction is at its highest. If there are lots of players in the market, then there are also lots of opportunities for you to enter into profitable trades.

The best Forex trading hours therefore can be plotted when the Asian (Tokyo), European (London) and North American (New York) markets overlap. Trading during this overlap is very high so you can spot more favorable opportunities at the market.

You can also enter the market at the first hour of trading in New York. At this time, the European market is still open so you can still ride on high trading volumes. When the European market closes, the New York market will still be open until 4PM EST.

After New York closes, trading will start in New Zealand followed by Australia. The Asian market will overlap with the Australian market during midday so it should be the best time to open your trades.

Learning to time your trades during favorable Forex trading hours is important if you want to get higher profits from the international currency market.


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