Friday, November 24, 2017

Best Forex Trading Times

August 11, 2010 by  
Filed under Forex FAQ & Latest Post

This is another question that is asked by one of my newsletter subscribers.

I would like to know the best forex trading times to start trading which can produce profit with at least 90% success.

There are several timing of the day that are better to trade and these timings are what I refer to as the best forex trading times. At these timings, there are high volumes of trades which will translate into bigger price movement.

In order to make money from forex, you have to make use of the large price movement to give you a good risk reward ratio.

Below are some of the best forex trading times to trade

  • London Open – Eastern Standard Time 3 a.m.
  • London Close – Eastern Standard Time 12 p.m.
  • New York Open – Eastern Standard Time 8 a.m.
  • New York Close – Eastern Standard Time 5 .m.

I love to trade these timings because of the volatility, these are when the big dog traders start to enter their trade and exit their position. If you are able to trade in the same direction as these professional traders, you will be able to make great profit.

As for your second part of the question asking for time which can produce profit 90% of the time, I will say there is NONE.

Forex trading relies a lot on the action taken by the trader and not the time. In fact, being able to trade with 90% accuracy is pretty rare. Most successful traders trade with 60 to 70% accuracy but the reason why they are still profitable lies in their risk reward ratio.

Therefore if you are looking to be profitable in trading for the long term, you have to horn your money management skills.

I hope that I have answered the question and if you have any suggestion or input for this question, do share your opinion by commenting below.

Comments

4 Responses to “Best Forex Trading Times”
  1. Darhan says:

    i want to know how to determine this time actually.
    since i am new, could you please let me know what is # London Open – Eastern Standard Time 3 a.m.
    # London Close – Eastern Standard Time 12 p.m..
    Does that mean i should only trade on their currency only?

    • Kelvin says:

      Hi Darhan

      London open is the timing where the london traders start to work and this is the time where they start enter their position. As their trading volume is very large, you will usually see a big movement around that timing of the day. Similarly, london close is the time where the same group of traders end their working day and thus will exit their position.

      This does not mean that you only trade their currency only. However at these timings, you will see currencies like GBP and EUR moving more strongly.

  2. Eddy says:

    Hi Kelvin;

    First of all I want to say that your guide is so complete and esay to understand I just made 300+ pips on the EUR/USd drop on Thursday-Friday and closed it Wednesday when the dollar started consolidation. My question is: How do you know what time frame to use? You just start looking for a trend on every currency pair time frame? I need guidance on this, The way I’m doing it is that I start on the 15min of whatever currency, and if I can’t find a trend I move to the next time frame if not to the next currency pair.. is this right? Am I doing it wrong? or making it to complicate it?

    • Kelvin says:

      Hi Eddy

      Your way of doing is also okay. I usually look at the hourly chart for trend and then move down to 15 min to look for opportunity.

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