Appropriate Time –Tips for Forex Trading

It is better to know when not to trade rather than the right time to trade. This will always help you in minimizing your losses, the preferred winning strategy behind every Forex trading activity. 

To determine the time that you should not trade the forex market, let us first go through the reasons behind that. There are two things that need to be taken care of with one involving you and the other the market itself. 

Trade restrictions due to individual cause:

Distraction happens to be one of the most important reasons that affects the Forex trading session for anyone. Even on a fine single day, staying concentrated and watching the market for hours will be more tiresome. So, it is better to optimize the trading time by dividing the whole day into little sessions that you want to trade. During these chunks of time, take some regular breaks and refresh your mind. And about the distractions, lock yourself on to these small allocated trading sessions during which never allow any environmental distractions to disturb you. 

Never trade during time testing hours with those emotional conflicts of losing someone near and dear. This is the negative moment in your life that you will have no control of and you will be bound to take some false moves in the market. 

Trade restrictions due to market conditions:

Avoid trading Forex during those bank holidays, during which the trading volume will be lower or the exchange rates will be erratic. 

Traders should be aware of the scheduled press releases and economic news happening on the globe. Since these factors affect the trade instantly, updating the information is vital for making trading strategy. Even though there are numerous economic calendar available, I would recommend the economic calendar in Greenvault FX since it is more accurate and also convenient to understand.

Avoid trading during the hours of the ISM Manufacturing data report, since the market would be speculating more at this moment and it can tumble down or move up during this time. 

Look out for those speeches of the Governor of International banks and the Feds since their speech on economic and political factors will have a great impact on the market sentiments. 

Also restrict trading during the erratic period of the market with the market throwing more spikes. You may not really know the reason behind the unexpected movement of the Forex market and it is safe to watch than trade. 

It is also ideal to stay off during the closing session and the weekends, since the market will be highly volatile and will fluctuate to any side which you cannot easily speculate.