I have a question from one of our fellow traders in this community asking me what is the best time for him to enter the forex market for most profitable trading.
Below is the question:
I live in california USA.
what time of the day is the best time for me to enter FOREX market for most profitable trading? I am told 5-9 AM my time since London and New York market are both open. please feel free to give the answer in GMT time
No doubt the time that you have specified above falls into the time where both London and New York market are opened. In fact, this is the period where you will experience more volatility in the market.
With high volatility in the market, it means 2 things. Either you hit your target profit very quickly or you get stopped out very quickly. Therefore it all boils down to the effectiveness of the strategy that you are using.
If you have a good strategy on hand, you will still be profitable irregardless of the time you are trading. It is just whether the price hits your target profit in 30 minutes time or 3 hours time. For me, it does not matter as the most important thing is the winning percentage of my strategy.
My personal advice to you is to focus on looking for a strategy that really works and not be bothered by what time to trade. This is because most of you guys are having a day job on hand and therefore can only trade during the night time after your work.
Therefore what matters most to you should be the effectiveness of the strategy and not the time to trade. My suggestion for all students of my course as well as readers of this post is to trade at the time where you are most available.
In trading, you cannot be distracted by things and you will have to be focused. Therefore I always tell my students not to force themselves to trade. Simply fork out one or two of your available hours at night to trade and if you have a good strategy, you will still be able to make a decent income from trading.
Once your trading income is enough to cover your expenses, you can then decide if you want to trade full time or you want to use that as an additional income.
I hope that I have answered your question and do feel free to email me again if you have any other question.
For those of you who are reading this post and have something to share, do feel free to give your comment below.