How to trade effectively on Forex? The Chronotrading

Forex has the particularity of being the only market that is continuously on Sunday from 23h CET to Friday 22h CET. 

It is therefore possible to intervene on (almost) any currency pair, upwards or downwards between these two dates. 

Under this apparent comfort, however, there is a trap to be neglected. 

Indeed the trader starting on the forex often cumulates this activity with a professional activity. So in the majority of cases it will be simpler for him to trade, or early morning or late at night. Most often he will intervene on major pairs, which seem to him more reassuring, as for example the Euro-dollar. 

However, it should be realized that between 23h CET and 09h CET, the only open listings are those in Asia. It is obvious that a trader in Asia will trade more easily on the pairs relative to the currencies he supports, rather than on the Euro-dollar. In addition, the economic news will concern pairs containing Asian currencies such as AUDUSD or USDJPY for example. 

Thus the euro-dollar will be very volatile and will not be influenced by economic indicators overnight, which reduces the volatility of prices and therefore the chances of successful trades. 

To really optimize its chances of gains, the trader will have to try to intervene on this pair when both European and American markets are open, or between 2 pm and 6 pm. 

The spread is important in this case. Indeed the trader will have to ' Pay the spread between the price at which it buys a pair and the price at which it resells it. Only if the prices stagnate throughout the night, the trader will therefore lose the amount of the spread. However, the higher the volatility, the greater the likelihood of catching up with this inevitable departure loss. 

For each pair of currencies it is thus possible to determine hours favorable to trading and hours that are less.