Know your trading hours
You have undergone a long history of forex trading. We also informed you about the risks of forex. But do not get the idea that, knowing all these could result in making money. Pip movement largely contribute to making money, but forex is not your local stock market. It is an international market which is open for 24/7. We have told you about a trading session in forex. We don’t give you the basic idea when to trade and when not to trade. Here is the graph
Figure: Forex trading Hour
Previously, we have told you about the trading hour. You should only make a trade when the market overlaps. We told you about the overlaps of different trading hours. You can find the overlapping hours in our previous article.
How forex session contributes to money making? If you think it is only the risk management and pip movement, you are wrong. If you trade in an off-market hour, your pip will not give you a movement. You can earn money when you pip move upward in buy and move downward in sell.
Importance of trading hour
We have told you about the trading hour of forex. How is it related to your making money in forex? Here is your answer.
You cannot buy your clothes when the market is closed. You are prepared but the market is closed, you cannot buy cloth. The same is for forex. If you enter the market when the market is off or not moving in, you cannot make money.
Also, Forex is a 24/7-hour market. It does not rest. Therefore, trading in the forex is profitable, but not when the market is not moving. Every day, the forex market move only 300 pips. Yes, you have heard it correct. Trillion-dollar size market moves only 300 pip. If you enter the market when all the pip movement has been done, do not expect to make a profit.
Forex markets overlap. The overlapping market gives the best movement. Keep it in mind that, European markets gives you the best movement. If you want to trade with a larger market movement, trade in the European market. But also, remember that more movement means more profit or loss.
Different currency pairs are in the forex. There are 8 major currencies. There are also many other minor currencies. If you know the trading hour of the forex and prepare your risk management, you can make money in forex. But do not be greedy and trade after winning a trade. Follow a strategy and monitor the movement of the market. Patience is a key feature to get success in forex trading.
This is a little kid basic to you about forex. When you trade in FX market with your real money, you will find these topics really helpful and guide you to make a profit. Practice hard, build a simple strategy and don’t follow a different pattern for every trade. Keep track of your trading profit and loss and you can make money.