Forex market opens on Sunday 5 pm EST (10:00 pm GMT) and closes on Friday 5 pm EST (10:00 pm GMT). That is why forex market is very different than any other businesses. We get privileged to do forex trading 24 hours a day. But most of the time we don’t get good movements due to some factors which is very important for us to know.
It is better to do tradings at market sessions. Most of the people like to trade at Asian, European and US market sessions. Also when London and US market overlaps, it is better time to trade. These market session gives more liquidity to the currency market. Okay its just a simple explanation why good trader only trade at certain time period and not all the time. Over trading is just opposite and here a trader don’t follow any rules and only try to trade all the time.
Market Hours In Different Sessions
It is good that because of flexibility of time we can manage our schedule for forex trading. If we’re working person then we can trade at our free time. If we’re student, housewives then also we can adopt forex trading because of its greater flexibility of time. But sometimes the same advantage suffer us most. Due to such privilege most of the traders often try to do over trading. This is because every trader try to earn as much as possible in short span of time. But they should try to understand that forex is not that kind of business where earning money is easy. Here one should try to give more time in analyzing the market and only trade when there is a good confirmation of good trend.
Market won’t give us same results all the time. Sometimes we may not get the correct trend or sometimes we may failed to open order at correct level. It is better to avoid tradings in such situations when market seems to be uncertain. If there is any high impact news about to release then also at that situation we’ve to be very careful. Sometimes trader don’t read news and only trade by looking at charts. Due to over trading habit a trader can’t get enough time to read news updates. So a trader should try to give sometime in reading fundamental news in order to make good trades. It is better to follow trend rather than to predict the trend in advance. Most of the time our prediction goes wrong and we face huge losses.
Over trading cause some types of stress in our mind. One small mistake may costs us heavily so it is better to avoid over trading. If we take small breaks or wait for some corrections then obviously we’ll get good level to open our orders. If we don’t stop trading at a point then it is possible that our good profit turns into negative in no time. In order to save our account from any bad trades it is essential for us to avoid over tradings.
It is better to do 1 good trade than 10 worst trades. If we avoid over trading then obviously we’ll be able to earn good income even by opening one single order. Remember that our main motive is to make good profit and not to do good number of trades. We do over trading because of greed factor. We want to become rich by doing lots of trade within a day period. But believe me it’ll never work. Due to over trading, sometimes we may miss good opportunity and trapped into bad trades. Over trading only gives bitter experience rather than better experience.