Forex Special - The Forex market is always exciting because it never shuts down. Well, other than the weekend. That being said, as a novice Forex trader it is best to stay awake and stare at your computer screen twenty-four hours a day until the weekend. Do not, by any means, go to sleep. You might miss the one trade you want to make and you'll never forgive yourself. It is best to simply stay awake all the time. You may have to forgo the bathroom breaks, and certainly eating is going to be out of the question. Coffee may be a problem because of the forbidden bathroom breaks, so you'll have to stay awake on your own self-will.
Into the second day of this schedule, after you've awoken from having passed out from sheer exhaustion and boredom, it is time to re-think the strategy. You may look at the date on your computer and realize that you've slept for the same amount of time you tried to stay awake. That's okay. The good news is...the Forex market is still there. And more importantly, you've learned a lesson. You can't be in the market all the time. There are times to trade, and there are times to walk away.
The easiest way to determine when the good time to trade Forex is to do what the professionals do. They trade when the volatility and liquidity is greatest. It makes sense. Getting into a Forex trade at the market price is rarely a problem. Getting out of a trade at the point you want might be. It all depends on liquidity. The more people available to trade, the more likely it is to be able to do what you want, or what you need.
If you're looking for the prime time of Forex trading, it actually boils down to a mere four hours a day. This should be an attractive option to those that enjoy things like eating, sleeping, and going to the bathroom. The optimal time to trade Forex is between the hours of 8 AM to 12 PM EST. That's it. Four hours. This is the time in which the European market is closing and the United States market is opening. The overlap of this time frame usually makes for the best atmosphere in which to trade. For obvious reasons, this is usually a great time to trade the most popular EUR/USD. And this is always a time that most of the professionals are getting involved, so if there is going to be movement in the Forex markets, this would be the time it is happening.
If you feel guilty about only working four hours a day, there are other time slots that are attractive as well. If you're living in the States and suffer from insomnia, you'll be happy to find the European session runs from 2 AM to 12 PM EST. That should give you something to do. And of course, the American session runs from 8 AM to 5 PM for those that like to make it appear like they have a real job.
There are times to back away. The least volatile and liquid time is from 2 AM to 4 AM EST. This is the time of the European/Asian overlap. If you only need a nap to survive, take one during this time frame guilt-free. You're not going to miss much.
Balance is one of the most important keys to long term Forex survival. If you're burned out; sooner or later...so will be your trading.
