This article looks at achieving success in the forex Australia by trading at the most suitable times of day.
Traders who are beginners in forex Australia market are all seeking the one trading method or strategy that will allow them to make untold profits. There is not one piece of information that will allow you to make money in the forex market. One of the main factors to consider is the time and the trading session you intend trading in. The currency pairs you trade will play a huge role, as will your trading strategy. Your strategy, if based on technical indicators, will be dependent on the time of day you trade.
You could be heading for disaster if you do not consider the most suitable time of the trading day for you to trade. Many traders use the same forex strategy for all their currency pairs, irrespective of the time of day they trade. This is totally unsuitable as a forex strategy that may be effective for morning trading may not be effective during the evening. You should make use of different strategies for the different times of day that you trade. If you are happy with your forex strategy and it has proven to be profitable, you should take note of the most profitable times you have used it.
If you wish to use a breakout strategy, you need to wait for a catalyst that will act as an indication for you to commence a trade. If the motivation is present, a breakout could occur. For you to continue trading, you need market movement. When you consider all these factors, you will notice that the most suitable trading time for this strategy would be during forex news release times. The times when news announcements from the US and Europe are made will be your most suitable times to trade. News from these regions generally has a greater market impact and this pushes more traders into the market.
If you wish to enter into a range strategy, you should use the economic news releases that are used by fundamental traders. The main difference between these traders is that range trading should not be undertaken during the time when the announcement is released. Most range traders work on the mantra, ‘breaking news equals broken ranges’. This is there to remind them that as soon as the market ranges have been broken, their strategy will bring about losses. The market at that point will not be suitable for a range trading strategy.
Times to Trade Forex Australia
Analysts often collect data to try and determine the best trading times. The data that is collected is normally split to include the seven most commonly traded pairs in the major currency groups.
Based on the information that was gathered, they determined that the best trading time is between 13:00 and 17:00 GMT. This is when the majority of the American and European traders are active in the market. The main reason for the increase in opportunity levels is that about 60% of all the foreign exchange transactions are done during this short period. If you are a range trader, it is advisable for you to stop trading during this time. The best time for range trading has been found to be from 21:00 to 06:00 GMT. This is when the Asian traders are active and the chance of high risk events is at its lowest.