Many people who are just coming into the forex trading market tend to rush after all the advertised offers they find online. As a beginner, you need to understand that forex trading is not the same as Wall Street that operates an eight hours working schedule. When it comes to trading forex, you need to know that there are four time Zones you will need to consider, this time zones represents all world time zones. The business hours in the time zones differ, which is the reason why forex trading goes round the clock. If a forex trader tries to chase every forex transactions, such trader will not only run out of financial resources but also will also lose persistence.
In other to create a sustainable work schedule and not miss your night rests, try to understand the most productive market hours, this will help you to set your goals and mirror your aspirations. The forex market opens on Sunday at 6 pm and closes on Friday afternoon by 4 pm. this time is enough for traders to follow their deals, remember that all hours are not equally productive when talking about the volumes of trade. Enter the market when activities in the trade market are at its highest point, this point occurs when four markets simultaneously engaged in a trade.
Reactions like this show that the atmosphere for deals at this stage is at its best, meaning that you should naturally expect greater fluctuations of the highest number of currencies. When only one market is engaged in a trade, it shows that there is a tight lock preventing currency pairs from fluctuating concerning prices. At this time, the Pips can only allow a movement of thirty points. But when two markets are in business there is the tendency that the Pips could hit the seventy point mark and even surpass. Note also that any time there is exciting news, the market will record an even higher pip spread.
If we take a look at the New York market as the second busiest market forex market in the world, it opens between 8 in the morning and closes partially by 5 pm; this market keeps traders on their toes as they try to follow the market fluctuations. As a result, they decide to spend the largest chunk of their time following the market activity. The reason is that ninety percent of the trades in this market revolve around the US dollar. Investors keep a watch at the market fluctuations of the New York market and expect the value of the dollar to rise when there are mergers and new acquisitions.