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Chapter 4, Part VI. When should we trade? Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 14, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    So, let’s make a small conclusion about the timing of trading:

    Reasonable times for trading:

    - Crossing of different trading sessions is particularly suitable for trading, especially London and New York trading time overlapping;

    - The European trading session itself, because it holds about 30-35% of overall daily transaction;

    - Additional attention should be paid Europe and US morning time, because of macro data and news releases.

    - The middle of the week shows greater activity than the beginning of the week, because professionals start gradually to pick up trading steam.

    Unreasonable – better to stay flat:

    - Weekend and Holidays – have you nothing better to do? Rest is must.

    - On Friday in general, or at least in the second part of NY day (after 12:00 EST). First, because activity starts to fade during this period. Second, because market can turn to choppy price action and reverse previous trends. This could happen due to couple of reasons – massive close of positions before the weekend, and/or profit taking.

    - During important macro data releases or Central banks minutes/statements – the market really can go mad and turn to Doom and Gloom in this period so, that you even can hear screams “Let me out!” if you just open your window during this time. Seriously speaking this is the time of whipsaw action and you could be stopped out (fixing a loss) if even you are right and market after some chop will continue move in your favor.

    Pipruit: Well, this is really goldmine of insight. I even couldn’t assume that this information will be so important. Thanks, Commander.​

    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.

    Note: FPA ranks are earned in the battles against scam, not in the classroom.
    greenmason, Saleh1980, fajrss and 5 others like this.
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