The timing is one of essence to the success of a trade and every trader should know this fact. Traders have a lot of losses because of choosing a wrong timing. They have traded currency at time when the price chart are against them. There are several facts that will help to avoid losses.
1. Learn how the market works
Not all hours are suitable for trading and first of all a trader should learn this. The safest period to open a trade it is when the market is most active. Also, the trader has a possibility to open a trade in the situation when more than one market is open and there are greater fluctuations in price movement. For example, it can be more than 75 pips north. On the other hand, when only one market is open, the price can be locked into one zone with a charge of around 30 pip range. Besides, the trader needs to study the New York Stock exchange because the American dollar is involved in 90 percent of all trades in the Forex market and we can identify this currency like the biggest trading platform in the world.
2. Overlap timing
At the moment when the markets overlap there is and equals chance of risks and profits. Traders should keep an eye when more than one market is open. For example, the most overlap in the US and London markets occurs from 8 am to noon. Every trader knows that the euro and dollar are the top currencies to trade and it is the greatest time when the volatility is really in a very high level and this would be the best time to start a trade.
3. News
Trading news can change the whole market and does not matter in what time. Besides, a trader should not base his decision on every unusual news that will not bring him good results in trading. First of all, trader needs to be on the lookout for news such as GDP data, unemployment rates, retail trade, CPI data and other types of similar news which have a great influence on the Forex market.
The trader should keep in mind these aspects during the trading process. If a trader knows the time when the market is highly volatile and aware of the important economic data that released in new, he has a great possibility to make a serious profit.