When To Do FX Trading

Attraction
For a start the FX market is vast, trading on average over 3 trillion dollars a day, this eclipses all the other markets. This injects a massive amount of money to trade forex in
relation to other markets i.e. having someone else who's prepared to take your order. Now I often hear how the market is open 24/5 true, however there are some specific times you need to be aware
of where new money or traders tend to enter the fx
market in large volumes i.e. Tokyo banks opening, then Frankfurt,
followed closely by the biggest market London,
accounting for around 80% of the trades!
Timing is Everything
As a trader you have to be making decisions at the best times i.e. when lots of other traders are entering the market and hopefully seeing the same things that you are, for example a lower high at a significant overlapped resistance zone, at the London open
will often be a likely place to see an opportunity to trade forex.
Buy Now Or Later
The idea is very simple if a market has been rising all night from, the Tokyo open then who
wants to invest at the top of a move, now that's not say it won't go higher, it often can and
does, however investors will more often than not wait for a
pullback to enter at a more favourable price. This
makes sense as in the example the Tokyo speculators probably have had a good session and are waiting to go home, so if you've had a profitable day you're likely to do two things, close your position or take some of it and bank it, this will lead to the price falling. Now if the
move to the up looks like it hasn't reached defined targets yet, then often investors will attempt to push the pair back to test the highs and this is when we see if the move has any
validity or not.
New Blood
I often see newbie investors coming into fx trading and are quite
baffled by why the price has sharply dropped after such a strong move. Put yourself in the shoes of fresh investors entering the
forex market and ask yourself do I want to be buying at the "temporary top of a move" because you are exposing yourself to poorer chances if you do, and that
is never in a traders greatest interest for fx trading. Often
the toughest thing to do is accept that a trade has started and you're not involved in it, it sucks but it's part of Fx Trading I'm afraid.

Where To Start
The point here is to highlight you to the best times and when your opponents are likely to come into the market to trade
forex and how fresh eyes will look price. No matter what, all charts
will show you 1 thing, what price has done and where it is now at the point
you look at it. To be successful at fx trading you have to see the
currency market as other traders do, that way you'll make a giant
leap forward in your ability to trade forex, but this is just the tip of the iceberg.

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