To sleep or to trade? Schedule distribution in trading.

To sleep or to trade? Schedule distribution in trading.

The foreign exchange market operates 5 days a week - 24 hours a day and without breaks for lunch (excluding holidays). But not every trader tried to trade on Forex at night: someone simply does not know that it is possible at all, and someone does not know information about the peculiarities of trading at this time. In this article we will discuss the advantages and disadvantages of night trading.

Calm in the market

After 00:00 on MOSCOW TIME foreign exchange market calms down. Most traders finished trading, left their jobs and went to rest before the new trading day. UK and US banks and hedge funds are following the same example, leaving the market until morning. However, although activity on Forex is declining sharply, it is still there, because there are still traders who prefer the night trade.

The night market is calm, less volatile and changing, and therefore easier to predict - it attracts traders. But not all features of trading at night are universal and fit any strategy.

Trading at night: is it worth it?

Night trading can both bring profit and ruin if you do not know the peculiarities of such trading and are not able to use them.

Let 's take a look at the main ones:

Forex at night is ideal for scalping - the exchange rate changes very slowly. Thus on small changes and with a large number of deals it is quite realistic to get a good profit; But at the same time it is necessary to take in attention that at 00:00 on MOSCOW TIME there is a so-called "bank rollover" (in which period of time there is a clearing and transfer of open positions of participants in night). Which leads to a sharp decline in liquidity and an expansion of the spread. As a rule, it lasts 10-15 minutes, and at 00:30 everything stabilizes - the spread comes back to normal for this trading session. It is also necessary to understand that at this time of day higher volatility shows assets of the Pacific and Asian region - the euro dollar and other European currencies will be traded less actively.

Analyzing the night market is much easier than the day market. The volatile trend does not breathe in the back of your head and you have time to think quietly; Movements in the market during this period no longer carry an accumulative and distributive phase. Therefore more the market is included into a vase of the flet, a _nogda accurately defining its borders.

At 2:00 PM, Japanese traders start trading. This is a great opportunity to make money by focusing on currency pairs such as EUR/JPY, USD JPY, GBP JPY;

Despite the night time it is necessary to remember that somewhere now white day and burrows life - news and tp come out. Be sure to watch Forex calendar and follow the news, as with reduced night liquidity news movements can be quite large. Statistics that come out at 03:00-03:30 on the ICN are a serious reason to stop trade, because during this period important data can be released, which will cause an unexpected jump or fall in price.

Night time is not the best moment to make difficult decisions. Our reactions are stalled, the brain is slower, and there is a serious risk the next morning of much regret about what it did at night.

Night trade, just like the usual day trade, does not guarantee profit. But if you study all the features and subtleties, compare with your trading system and your own capabilities, you can wake up a little richer one morning.

Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

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