by Monica Hendrix
If you want to make money forex trading you don't need to constantly watch prices - this is a total myth. You really only need to look twice maybe three times a day at most and that's it. So what are the best times to trade?
The first point I want to make is you will hear a lot of rubbish written about the best times to trade.
Today there is a huge market in telling people they have to be in touch with price quotes all the time to make money - Nonsense!
This is normally put about by day traders (who all lose anyway as all short term movements are random) who think that it helps them. They also put about another myth - stop loss hunting by brokers! Forex brokers don't need to do this, because day traders have their stops within random volatility and will get stopped out anyway.
So What Is The Best Time To Trade?
If you are swing trading or trend following the best times to trade are:
After the close of the American Stock markets or the Start of the London Session.
When I started forex trading we didn't really have a retail forex market at all and everyone traded forex futures. We all tended to base our trading on the close of the US markets, it worked very well and I still use this time frame to this day.
Today, the London trading hours see most volume and the USA next.
The Asian market is not really significant in terms of trend direction you need to focus on the big two.
My trading is always done at the close of the US markets and I check London Open and that's it.
All the moves that you see intra day are random so don't watch them.
You hear of traders staring at quote screens and I always think why?
It won't help you make money, stresses you out, gets your emotions involved and it's boring!
So if you want to trade forex and you want to get good times to initiate your trading signals, I would use the close of New York and if still not totally sure, wait for London and that's it.
Forex trading is all about making money and traders who think that watching quotes all day need to brush up on their forex education, as it won't help them win.
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