Many traders have a tendency to stay up all night. In fact, you can choose the best time to trade according to each style.
The problem of choosing the best time for trading is often complained by new traders. The intention is just trial and error and make trading as a side job, but the hours of sleep instead become messy. In addition, there are also those who feel burdened because the release of news impacts often arises when traders do not monitor the market. For example when trading EUR/USD, many are forced to shift hours of sleep and wake up all night while being prepared in front of the chart.
If you are a Full Time trader who doesn’t need to go to office early in the morning, it might not be a big problem. But if you still have to work from 8:00, trading with staying up late risks the health and lifestyle as a whole. Therefore, you must have a way to choose the best time for trading.
When is the Best Time to Trade?
Actually, forex trading is an activity that can be tailored to each individual. If your colleague prefers to stay up while trading, you don’t have to force yourself to follow his sleep hours. The most important thing is how to get profit and avoid loss. Easy when spoken, but it feels difficult when it is applied. Especially if you are easily tempted to peek at the trading platform constantly.
The solution, you can choose the best time to trade by answering the questions below:
Pair What You Trading?
When opening a position, adjust your trading time with the forex market opening hours of the country where the currency will be traded. For example, if you are trading in the EUR/USD pair, you should start entering the market when working hours of the United States and Europe are opened. Price movements that occur when the markets in the country are open tend to be faster than other hours.
If you are looking for a pair that has market opening hours in the morning until noon, then the pair that uses JPY (Asian Session) or AUD (Sydney session) is the answer. However, even this pair selection must be based on various considerations.
What is Your Trading Style?
After determining what pair to trade, the next method is to recognize your own trading style. Are you very focused on the chart and don’t care too much about the hustle and bustle of the news, or rather prefer to follow the news and use some indicators as a trend confirmation.
There are traders who follow the news and are FOMO (Fear of Missing Out) aka don’t want to miss. Well, here is the source of the turmoil that often arises. Since you live in Indonesia, News Release often happens at a disadvantage. When you want to sleep well, working hours in Europe and the United States are busy.
In addition, there is often a misunderstanding that News trading means having to react when the news has just been released. Even though trading strategies can be arranged since the news has not been launched. In fact, for some technical traders, they will avoid the market when the news is flowing. So, you really don’t have to stay up late waiting for the News Release.
How Much is Your Leisure Time?
In addition to paying attention to the pair and the strategies used, one more thing that needs to be considered in choosing the best time for trading is how much free time do you prepare to observe and analyze the market.
This needs to be taken into consideration, especially for traders who still have other jobs outside of trading activities. Do not let forex trading activities actually interfere with other more important activities, such as work time (Especially for beginner traders or making trading as an additional income), worship, or quality time with the family.
Forex trading requires commitment and a stable psychological condition, do not force yourself to watch all night if it actually triggers stress and disrupts your health. If you have the intention to become a Full Time Trader, make changes gradually.
Tips After Getting the Best Time for Trading
After deciding the best time for trading, you now know that forex trading doesn’t have to stay up all night. You can apply the methods below to be able to keep trading and maintain a break pattern:
Take advantage of Existing Features on the Trading Platform
The trading platform provided by the forex broker has facilitated you to be able to put your position more easily. Without needing to keep an eye on the chart, you just have to set it at certain levels and then go to bed quietly.
When you wake up early, you only need to check the results. If profit, is only harvested, if it is exposed to loss, accept it in a generous manner and make it an evaluation. These features include:
- Stop Loss, which is the lowest price limit specified to limit losses. When price movements touch this value, the system will automatically close the order or position.
- Take Profit, which is a feature that closes a transaction automatically if it has touched a certain profit point. This is very useful for securing profits when price volatility increases.
- Pending Orders, as the name implies, are pending orders, Buy/Sell positions determined through this feature will only be executed when the price touches the level you are targeting.
- Trailing Stop, which is the order to move Stop Loss in forex trading which is mobile (not static). Unlike the manual Stop Order or installing a Stop Loss, Trailing Stop will move following the price movement with a distance of the pip we have specified.
Have a Trading Plan and Discipline
You really don’t plan to open any position tonight, but there is news that the EUR/USD will move bullish so there is a temptation to enter the market and put up a Buy position. As a result, you feel that it is the right time to trade.
Hold it first, check your trading plan again and how much capital you have. If the opportunities are still in accordance with your risk management calculations, please enter the market. If not, it’s better to retreat than to regret following a moment of euphoria.
Now you know that the right time for trading for each trader varies, depending on trading pairs, trading styles, and free time that you can provide without interfering with routine activities. Adjust the right time to trade with your conditions and comfort. In order for your trading to be more stable, avoid also the most dangerous forex trading time.