Forex Trading - A Look At The Time Zones

Forex Trading - A Look At The Time Zones

Forex Trading - A Look At The Time Zones

For an average trader, forex trading time zones can be intimidating and difficult . Just like many other traders, when I started in this global, cash, 24 hour market, I couldn't make a lot of sense from the time zone issue. Over time that would change and in this article I will share some basic insights on how the 24 hour market is handled by me and when you prepare for your next trading day, it will help you out .

The first thing you need to consider is where you live , or where you plan to do most of your forex trading trading from. This will be the single greatest factor affecting how this 24 our market is looked at . For an example let's suppose you reside in California which is on Pacific Standard Time and on the United States West Coast which is three hours behind East Coast time in New York.

Now that we've determined that we are going to do our trading from California , and we know it's three hours behind East Coast time, we can begin to plan our forex trading day. In this 24 hour market that never sleeps ( while it quiets down on weekends and big international holidays) the day is rest and stops when the financial centers in New York close at or around 5pm EST and then banking centers like Hong Kong etc in the Far East opening, starting their new day, at about that same time . Taking this into consideration it is best to set your trading charts up so that the daily bar or candle you use will close every day at about 5pm Eastern Standard Time.

So now we've determined that we are trading from the West Coast in the US which is 3 hours behind NY's Eastern Time and we also know when this 24 hour market stops and resets for the next day . Next we have to decide when to prepare and plan for the next day . If California is where you live, like our example, and you like staying up late then perhaps you'd like to get ready to trade the London session from about 1am Pacific Standard Time to 4am Pacific Standard Time . Perhaps you like sleeping and you want to sleep through the session in London but you don't have a problem being up early, around 4am PST (7am EST) so you get a look at the end of the London session and get prepared for the session in New York which will really get going around 5:30am PST (8:30am EST) . Maybe you don't like to get up early and the middle of the day is when you prefer to trade; no problem . Just wait until around 2pm PST (5pm EST) when the day begins in Tokyo and you can trade FX during that major market session .

Now you have a good look at the forex trading time zones and what they're about and can plan your days accordingly . And remember , planning and being prepared are the most important factors, yet often overlooked of success in this business and any other business . So this is how you plan out your forex trading day.

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