Best days of the week to trade Forex
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I get this question a lot: First of all, let me say that I think Emini futures are the perfect trading vehicle and the first hour of trade after the Open 8: So if you can arrange your affairs to be able to trade at this time you should.
For me that means having a different trading schedule depending on where Mrs. Emini-Watch and I are during the year. But the fact is, our global stock markets have become increasingly correlated. Particularly since and the onset of the GFC. Sure, the relative changes betas between different stock market indices differ. And the smaller indices are waiting for cues from the US stock market.
So with the US equity best market to trade at night dictating what happens around the world, for all the different stock markets, the overnight or after-hours sessions of these futures markets become the most important time to trade. For example, in Australia the overnight futures activity will follow the US market and then in the morning, when the Australian stock market opens, the index will gap up or gap down to where the futures say the market should be.
And this international stock market behaviour just locks you into trading the US Open — again. Choosing the right kind of market can have a big impact on your trading success. Liquidity means that a market is large and deep. It has lots of players and lots of volume traded. Volatility means that the market actually moves around quite a lot during the trading day. To some extent the bond market has become one of these dull markets.
Yes there are big long-term trends, but day-to-day the bond market is very sleepy and is increasingly captured by Central Bank intervention. Electricity means that you want to trade a best market to trade at night that transacts through an electronic exchange. An electronic exchange and electronic trading will give you a level playing field on which best market to trade at night compete.
You want to trade a market that is a little bit of a Goldilocks market: The chart above shows a hour clock with GMT and the corresponding times in Chicago. So for example, the 8: Then the 3 major trading sessions — Asia, Europe and America — are shown below with Opening and Closing times.
As we roll around the hour clock, we have the Asian markets Hong Kong, Tokyo, Beijing opening first. Then the European markets Germany, France, UK open next with a little bit of overlap between the Asian markets closing and the European markets opening.
This is the time of day when the markets are most active — there are the most number of data releases and company announcements — and the greatest volume is traded in equity, bond and forex markets. Traders often email me saying that such-and-such happened at this particular time in the Emini.
There is a convention that is used and you should be aware of it. Timestamps should use the timezone of the exchange were the market or instrument is being traded.
And there is a one-hour time difference between New York and Chicago. So again, the dog that is wagging the tail best market to trade at night the US market and what happens in the US is incredibly important. If the US market is going to stage a large reversal, it usually does that before 11 am Chicago time — so the Europeans are at their trading desks best market to trade at night can help drive the move.
The Yen tends to trade a little bit differently from the basket of currencies that is Euro-centric: The Nikkei index is incredibly important but is maybe being overtaken by the Chinese markets. Yes, the Nikkei is a bigger market but the Hang Seng market is actually a mask of the Chinese market, which is much bigger. US Dollar cross is incredibly important. The only time of day that I would suggest NOT trading is the 2 hours before the end of the American session and the 2 best market to trade at night after the end of the American session.
This is a difficult time to trade — the ranges are smaller because most of the activity has happened earlier in the day. Obviously there are exceptions, like FOMC announcements that tend best market to trade at night be volatile, but be careful during this 4-hour window. I try to be in bed by The REM sleep cycle is about an hour and a half, so if I sleep in multiples of an hour and a half I will wake up feeling fully refreshed.
There are obviously other important markets around the world: Pick the market that makes most sense for you to trade. Good luck with your trading. Emini futures are probably the best day trading vehicle in the world best market to trade at night and the 'Better' indicators are a very unique set of 3 non-correlated indicators that will give you a substantial edge day trading Join 10, traders who follow Emini-Watch.
Input your email address below to get Emini trading updates by email:. A note about timestamps Traders often email me saying that such-and-such happened at this particular time in the Emini. How to adjust your sleeping patterns to trade overnight Great advice from Racer Pups: Latest video from Emini-Watch. Next to sell off?