Though nowadays having such economic crisis, the US is still considered as one of the leaders in the world. U.S. trading is accounted second in the terms of the largest trading center. The US trading is begun right after the European session. As for the US trading session, around twenty two percent of total currency trading in the world takes place in the US trading session. It’s like the Asian-Pacific trading session. New York, the business capital of the US, holds the biggest chunk on the US trading session, accounted to 19 percents of trading volume. Therefore, no wonder that New York becomes the head quarter while US trading session takes place. During the US trading session, the major currency being traded is US Dollar (USD/US$). So, the US trading session is the best time to trade USD. It is understandable that during the US trading session, USD trade has a volatile, bull raging, and wild situations with such turbulences of bid and ask. Not only is the amount of the USD being traded in a very high volume, it also shows that the USD trading is harsh.
The US trading session starts at 8 AM EST (EDT) and closes at 5 PM EST (EDT).
US Trading session As seen on how volatile the trading situation is, it is assumed that US trading session is mostly engaged by the moderate level to high level of risk traders. Due to the attachment toward the stock markets and bond markets, the US trading session awkwardly tries to fit in with those moderate risk takers.
The currencies being traded and having great pip movement during the US trading session consist of; the GBP/USD, the GBP/JPY, the USD/JPY. Those three currencies are believed to become great pairs that will lead to great profits due to its price movement. Around 95 pips are believed to lie in the US session. One more currency pair assumed to be a strong contender of the trading is the USD/EUR. You can take this pair as your alternative trading due to its strength in the market, and even you could have long periods of movement when you’re trading USD/EUR.
Don’t forget to take a look at the neighbor’s currency. Canadian Dollar is assumed to potentially become a great pair with the USD during the US trading session. USD/CAD has an average of the pips around 84 pips.
Similar to US Trading session, the European session is also viewed as having moderate and high risk takers for the traders. The movement of the currency rates is not only volatile, but it is bull raging, wild and full of turbulences, in particular after the closing of European session.
If you are a safe trader, you can take a look at those three pairs; EUR/GBP, EUR/CHF, NZD/USD with the average of around 45 pips. Since those three pairs have lower risks than the hot currencies, you can secure your way by trading on the quiet one. For a non risk taker, it will be suitable. A pair with no movement makes it easy for us to predict the price and make profits, though only some small amount.
For the traders, U.S. trading session is very attractive due to its turbulences. To support our trading, we should pay attention to the economic data released in the early morning of trading (8.30 am-10am). According to the report, there will be some movements in the US trading session. Every issue, every hint or economic news will become sentiments toward the forex trading. The forex market is a market that highly relies on and is attached to political and economic decisions as well policies.
Since the size of US trading session is enormously huge, the transactions being made there will also affect other parts of the world. Moreover, the forex market is closely linked to bond, stock as well as commodity markets. Therefore, if there is any news, data, information, policies or anything that might move the forex market, it will move other market as well. US market is very sensitive, so is the US trading session.
In order to gain profits during the US trading session, be sure to focus that your choice of currency is the USD. You can take both the short or long position, since most likely it is quite similar. During the US trading session, the choice of USD as your trading currency will be the best and safest choice. Non major currencies could be offering “quite” profits, somehow, you’d better think in the way that such currencies like NZD and AUD could become a long term trading and investment. For the day trading and swing trading, be sure you’re not choosing the non major currencies. Major currencies such as USD, CHF, JPY, GBP promise high profits due to their strong and volatile movement.
If you look for big time profits during the US trading session, it is best if you engage the USD trade. The USD trade is the major action that should be in mind; you’re in the US trading session.
When is the best time during the US trading session should we do the USD trade? I’ll say, after the economic data is released by the government. Let’s say that the data are released at 10 PM. Wait for around 1 hour and see the market reaction. You can start your trading plan and analysis with all the information you have. Your actions will be based on your trading plan. Be very sure you carefully manage the information and calculate the risk.
Simply said, USD trade is best done during US trading session, and start the trading after analyzing the economic data which are released by the government. All the data that you have gathered should be put into your trading account in order to help you decide when the best time is the USD trade can take place.
USD trade is significant to the world’s economy. When there is a negative rumor over the USD trade during the US trading session, it will eventually become a sentiment, a pull or push factor in the world’s financial market.
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