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Day In The Life Of A Trader – Trading The Forex Market
Today one of the most compelling reasons to become a Forex trader is that the market is open for business round the clock. You can make trades Monday morning through Friday afternoon. As well there are no holidays in the Forex market and the currency trading will not stop because there is a holiday in the USA or a country from the EU. Even if it is a Thanksgiving in the USA, but if it is a business day in Tokyo or Hong Kong or any other financial center, then you will have a lot of people trading currencies. Even if the trading goes on throughout the week, there will be tomes when there is quite a bit more activity in the market. And thus it is necessary to understand these key times and activities because they can provide your with trading opportunities.
The Forex market officially opens on Monday morning in New Zealand which means 5 pm Eastern Daylight Time in America on Sunday or late Sunday evening in Europe. If you are trading in Asia, then it will be early morning. Because the market has been closed since Friday pm, events and news that have happened over the weekend could have a great impact on prices just as opening gaps that occur on American stock markets. Expect price spreads to be greater at these opening times. Below there are some notes on the main sessions:
- Asia-Pacific session
As already mentioned, trading on Monday morning starts in the Asia-Pacific session. In fact, this session provides about 20% of total trading volume in the Forex market. The main currencies that are involved into this session are AUD, NZD and JPY.
- EU-London session
This is quite a large session, composing over 50% of the total trading volume as well as over one third of the total global volume is conducted in London. In this session you will see quite a bit of impact coming from the European countries – countries on the euro and some other personal country news. However, as well news from the UK and Switzerland will start to move currencies.
- North American session
In this session an average total trading volume is about 20% of the daily total volume, since they are is a far amount of overlap between the EU session and the North American session, trading volumes could be more significant. In the mornings, the American economic data could move the market greatly – risk data traditionally occurs in the early hours. Because the European financial centers wind down around midday in the USA, you see some extra flurries of activity because Forex traders from the European sessions ate closing out there positions. As well, such currencies as the GBP/USD and the USD/CHF could experience increased volatility.
As in any other sphere of life Forex needs some education.
Of course, one can start forex trading and be quite successful about it. However sooner or later the losses will come. It is precisely when you might think “Why didn’t I start with a good forex book?”
That does not mean that after reading even the best materials you will start closing trading positions with huge income, but this info will save you from many traps. And even if you make up your mind to get the assistance of a managed forex accounts service, still you will be able to make a much wiser decision.
And a final piece of advice – today the Internet technologies give you a really unique chance to choose exactly what you need at the best terms which are available on the market. Strange, but most of the people don’t use this opportunity. In real life it means that you must use all the tools of today to get the information that you need.
Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the online discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a wise and nicely balanced decision.
