Auto Forex Trading - A Look At The Time Zones
For an average trader, forex trading time zones can be intimidating and difficult . Like most traders , when I started in this global, cash, 24 hour market, the issue of time zones didn’t make much sense . Over time that would change and here I’m going to show you some of the basics as to how I handle the 24 hour market and when you prepare for your next trading day, it will help you out .
Consider where you live first, or where you plan to do most of your auto forex trading trading from. This alone is the biggest factor affecting how you look at this 24 hour market . For the purposes of our example here 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 , which is three hours behind the East Coast , we can start planning our auto forex trading trading day. In this market that goes 24 hours and never sleeps ( although it does quiet on international holidays and weekends ) 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 open and start a new day at roughly the same time. Taking this into consideration it’s best to have your trading charts set up so that the candle or daily bar you use will close every day at about 5pm Eastern Standard Time.
Since we know we’re trading from the US West Coast which happens to be three hours behind EST in New York and we know when the market resets and stops to start a new day . Next we have to decide when to prepare and plan for the next day . If California is where you live, as in our example here , and you’re a night owl then the London session is what you may want to prepare to trade from about 1am Pacific Standard Time to 4am Pacific Standard Time . Or, maybe you enjoy your sleep and want to doze through the London session but getting up early is no problem , at around 4am Pacific Standard Time so you’re able to see the London session end and prepare for the start of the New York session which gets a good start at 8:30am EST or 5:30am PST. Perhaps getting up early isn’t your thing and you prefer to trade in the middle of the day ; no problem . Just wait for 2pm PST or 5pm EST when Tokyo gets started 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 your days can be planned accordingly. Just remember, planning and preparation are perhaps the two most over-looked, yet important factors of success in any business , including this one . This is the best way to organize your auto forex trading day.
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