Forex trading is one of the best methods to earn money from homes. If you have a decent computer, high speed internet, and trading knowledge, you are all set to go. Since it is a market where a lot of money keeps exchanging hands, you will need to make the right decisions of buying and selling at the right times. Since Forex trading takes please in many countries, you latterly get the trading market open for 24 hours in a day.
Forex trading runs for twenty four hours a day except on the weekends that too for a few hours. One market or the other will be operational throughout the day. The currency market of different parts of the world, open and close at different times.
Since many markets open and close at various time of the day, a trader has an option to trade with different ones. To do these activities with accuracy and perfection, we should have the knowledge about trading hours. A lot of analysis goes into trading on currencies, because the changing trends depend on multiple factors.
The best hours to trade
It is best for traders to trade when the trading hours of 2 countries overlap, as the currencies are traded in large amount. The currency market usually works from the time starting from 8 am to 4 pm in the respective countries. Only a small non-trading window will be seen on Sundays, as Japanese market starts quite early on Mondays.
Various Forex trading hours according to EST:
London market open from 3 am and closes at 11 am EST. Frankfurt market opens from 2 am and closes at 10 am EST. Australian market opens at 7 am and closes at 1 am EST. Tokyo market opens from 7 am and closes at 3 pm EST. New York market opens at 4 pm EST.
You can observe that these are the timings of various market where trading goes on. If one takes a look at this time, we can observe that there is an overlapping in these timings. More than one market is open at the same time. It is at this time that the trading can be done at its best, because it gives you the option of trading with wide variety of markets.
Using a variety of market provides more advantages, but is best to take it easy in your starting days and try to learn a lot. Depending on just a single market can reduce the profit, and hence the overlapping hours are preferred by traders. Most of the wildly enthused individuals are in front of the computer at this time to earn their best.
You will basically need to fix your trade timings according to your conveniences. If you do not have the time to stay glued in front of your computers, you could go for long trades. You can use the stop loss option to prevent losses beyond a certain stage. Just make sure that you trade with your excess money and not with the money that is meant for your basic needs.