Most traders ask…How much can I make in a day trading Forex? What are the best days of the week to trade forex? What are the best and worst days of the week to trade Forex? What is the best Forex trading strategy?
It is okay to think this way. One certainly needs to know about currency trading before putting in a dollar, at least at the early stages.
In the article, I will provide answers to these lingering questions.
Now let’s get to it.
What are the Forex trading sessions?
The Forex market is open to trade all day (24 hours). Within the 24 hours’ time frame, the Forex market is further categorized in trading sessions in line with different continents. Each continent has its time zone:
- North America
Forex Trading Sessions
- New York
The Sydney trading session opens at 8:00 am on Monday and overlaps other overseas markets until 4:00 pm AEST Friday. Australian currency traders can trade 24/5 from 7:00 am Monday AEST.
The main trading session in the Forex market is between 8:00am to 12:00pm, London trading session.
Most trading hours are open when the U.S. London and Euro markets are open between 7:00 am to 3:00 pm London session and overlaps from 12:00 pm to 8:00 pm in New York (GMT).
Forex Market Center and Time Zones:
During national public holidays, a country’s currency is usually at its lowest limiting volatility in the overall currency market. For example, trading is low during the U.S. bank holidays, and this impacts the trading activities in other trading sessions. For holidays like Easter, Christmas, New Year, all markets remain closed.
What are the best days of the week to trade Forex?
The Market Traders Institute (MTI) from a statistical perspective suggests that the best days to trade are Tuesdays and Wednesdays when the peak trades take place. The most profits are made 3 hours in-between 8:00 am and 11:00 am London time which is when major corporate declarations and economic news are released. The EUR/USD, GBP/USD, USD/CHF, and the USD/JPY are traded during these peak trading hours.
What are the worst days of the week to trade Forex?
Sundays are closed trading days. Most experienced traders avoid late Friday evenings because the markets are usually unpredictable dovetailing into the weekend. Another peculiar period to avoid is public holidays which are equally unpredictable.
What is the best Forex trading strategy?
It all depends on what style of trade suits you and your mindset. To simplify this, you can either be a day trader or swing trader.
Day trading is a form of short term trading which involves taking profit in pips. This involves analyzing the market by reading currency pair charts, entering & exiting a trade in a timely fashion, and taking profits and losses in very little percentages.
Day trading is for the quick bucks. Target low hanging fruits and add up to a profit pool before the trading session ends. Note that all trades closed that same day. If you have enough time to monitor the charts and execute, then day trading could be ideal for you.
How much can I make trading Forex in a day?
There is no straight answer to this. How much you make in a day depends on a lot of factors. Your capital size determines how much you can risk per trade, your experience with the market are also key factors.
A person who starts out with a $500 account already has some limitations to the amount of lot size he or she can place per trade. The profit potential for someone trading with $5,000 cannot be compared with someone trading with a capital of $50,000. Most traders make between $50-$300 a day depending on the lot size.
No matter how experienced you are, your capital size increases or limits your earnings per day.