Posted by forex at 7:45 AM
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1. Familiarize yourself with the various forex sessions. There are four major sessions: the New York session, the London session, the Tokyo session and the Sydney session. The New York session lasts from 8:00 a.m. to 5:00 p.m. EST; the London sessions lasts from 3:00 a.m. to 12:00 p.m. EST; the Tokyo session lasts from 7:00 p.m. to 4:00 a.m. EST; and the Sydney session lasts from 5:00 p.m. to 2:00 a.m. EST.
2. Trade during the most active times. Different currencies will be more active at certain times. For instance, the U.S. dollar will be active during the New York session and the yen will be active during the Tokyo session. Also, notice that there are time frames where two sessions overlap. Use this information to trade currency pairs when they are most active.
3. Plan a sustainable trading schedule. Although forex trading takes place around the clock, it is important to keep a balanced schedule and get adequate rest. Therefore, you should ideally pick one session to focus on and trade currencies that are active at that time. Whatever time period you choose, just make sure that there is sufficient liquidity and market action during the times you plan to trade.