The Forex market is considered as the most liquid financial market in the world. Trillions of dollars change hands every day. It’s indeed a market that has great potential of making you rich, but it can also lead you to losses. In fact, more people lose than earn money from it. We can say, of course, that those who lost were not really prepared for the market. With all the Forex training courses nowadays and advanced trading software, there’s really no valid reason why anybody should lose money in the Forex market.
Earning from the Forex market is not only about being skilled in analyzing Forex trends. Your platform can help you in that score. Nowadays, there are even Forex companies providing you with Forex signals, alerting you of potentially profitable developments in the market. Another important aspect of Forex trading is, knowing when to trade. The market is a 24-hour business. The Asian, American, European markets may be open for only eight hours, but since it’s daytime in America but nighttime in other parts of the world, the global Forex market practically never sleeps. You should know what the best forex trading hours because that’s when you have better chances of earning money.
The Busiest Forex Market Hours WorldWide
In total, there are 15 independent Forex exchanges worldwide, and all of them open five days a week, from Monday to Friday. All these trading exchanges have their unique trading hours when you can trade currency and earn huge profits. However, if you want to earn most in Forex trading, these four exchanges are considered the busiest and most established exchanges which you can take advantage of and generate huge profits from your money.
- London – 3 am to 12 pm
- Singapore – 3 pm to 12 am
- New York – 8 am to 5 pm EST
- Tokyo – 7 pm to 4 am EST
Taking Advantage of Forex Trading Hour Overlaps
There is one thing you’ll notice with these schedules – trading hours overlap. The times when schedules overlap are the times to trade best. Why? Well, there will be more currency movements as there are more traders in the market. And when there more currency movements that’s where Forex trends become evident. That is the time when the opportunity to make a killing arises. You’ll have your software up and running, of course, analyzing the trends and feeding you the most favorable scenarios to put up your trade. During these hours, obviously, you have to be alert studying situations as they unfold and grabbing all earning opportunities that come your way.
From the established trading schedules of the four busiest financial centers, the overlap of London and New York sessions is the most ideal timespan for trading. These two sessions overlap from 8 am to 12 pm. Another overlap with the London session is observed with the Tokyo session beginning at 3 am EST and ending at 4 am EST. The third desirable overlap occurs between the Sydney and Tokyo sessions from 7 pm to 12 am EST. Altogether, these overlaps are the most desirable trading periods.
Though some of these overlaps may occur while you are normally in bed, it may be advantageous to adjust your sleep schedule if possible to accommodate trading during the peak periods. If not, at least try to trade during the hours when people are at home, and thus increasing the overall trade volume. The value of a commodity will not move much if there is no one online trading it, and these periods are for the most part a waste of your time.
Those new to Forex should take the time to memorize the ideal Forex trading hours before making their first trade. The ultimate goal is to make money, and this can best be done when working the market during the peak Forex trading times. It is also advisable to spend at least 2 months practising with the demo account before investing any real money into this market. In fact, about 90 percent of forex trading beginners fail because they lack the experience, knowledge, and discipline. Taking advantage of the demo programs available will help you hone these necessary skills. Doing some basic research and taking the time to hone your skills will ensure a greater chance of success trading on the Forex Market.