When Is The Best Time of Day to Trade Forex?

Pretty much anytime after your second cup of coffee is a good time to jump into a trading session. Okay, that would work out pretty good if you lived in North America or Great Britain. Otherwise, you’d be spending some quiet quality time with your computer staring at a minor tremor of activity. You want to be in the game when there is some serious earth-shattering movement, right?

Well, here’s the scoop.

Didn’t You Say At One Time Your Could Trade Around The Clock?

Yup. We did and you can. But if you are looking for the time when most everyone is jumping in and out of the currency market, then you will want to pay attention to the overlap sessions. We’ve already gone into some serious detail about the mechanics of the overlaps but what you need to know is that when there are more people participating in the market, this increases the potential volatility. That translates into trading fun and possibly some serious gains.

Which Overlaps Are Worth Paying Attention To?

Well, all of them, actually. But there is one that stands out the most. We’ll get to that in a moment. The reason why all overlaps offer good potential is that anytime there is an overlap, there are more players involved. The Tokyo-London Overlap won’t be significant in the overall scheme of things but it will present some interesting possibilities. If you are still pretty much a newbie this is a good overlap set of sessions to pay at least some attention to. Sure, it won’t be earth-shattering but it will offer a beginner more than enough interesting activity to learn a few things.

The Best Overlap Is…Drum Roll Please

We hinted at it in the beginning of this article. If you can spend any time with the London-New York Overlap you stand a chance at making some great moves. The primary reason is that between the two markets the majority of the trading in Forex takes place. So, it’s truly the timeframe where all the action takes place. Plus, combined with other activity in North America (Canada as an example) and the balance of Great Britain (we’re looking at you Scotland and Ireland) you stand a good chance at pulling together some pretty nifty trades. Also, the Tokyo-London Overlap may have established a trend or six that you can trade well into the London-New York Overlap and potentially score a good one or more.

So, The Best Time Of Day To Trade Actually Is?

There really is no precise time of the day that works best. However, if you learn how to use the overlaps to your advantage, you will be able to gain some serious experience from your tracking data. The more educated you become about the intricacies of the overlap windows, the more likely you will be able to leverage that knowledge into some winning trades. After all, that is the whole point of getting involved in the Forex market in the first place, right? You want to make a bit of a difference in your future.

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