June 19, 2017 at 5:23 am #1732
As you have known, Forex market has a different trading session, you will also have known that not all trading sessions are important. Each time session in Forex is different and you have to know, which session is best for your trading currency pair. There are various trading sessions and we are going to discuss the important of various trading sessions. Keep in mind that, the importance will vary on your currency pair as not all trading session is related with all the currency pairs. If you look at the professional traders at Saxo then you will notice that every single one of them are very much concern about the trading hours. They know every precisely that in order to execute the perfect trades in the market they need to execute the trades at the right trading session. For instance, if you trade USD relate pair then it will be better for you trade the New York session since the volatility will be high at that time.
The London Session
The London trading session is the most important trading session in the Forex market. London is also the biggest capital Centre of finance and this city is the heart of trading in the world of finance. In this London session, every day there are billions of Euros are being cleared. It is also in the same time zone in the European session. So, the importance of London trading session is very big when it comes to the traders who trade the market with Euro. Now that the Brexit has happened, it is not certain what will happen to the Euro, but this trading session will be an important part of Forex session.
European trading session
Also note that the European session provides the most market movement in Forex, Market movement is important as it is where the traders buy and sell their currencies and make money. As this session is related to the biggest market movement session, you will need to give extra focus on this time session. If you are trading in the European market with your Euro currency, you will find that you are getting more movements than the other markets. For instance, the professional traders execute high-quality trades in their online trading account in the Euro related pair in the European trading session for its high volatility.
The above trading session was just an example to show you how the market of Forex is related to the currency pair. You cannot buy a dinner set in the mall if you go there at midnight. You have to go when the mall is open and Forex market does not always give profit to the traders who are trading the market every hour. You need to focus on the trading session and place your trades. If the market movement is in your favor, you will make a good money out of the Forex market.
Risk management factors
By now you guys are very much cleared about the different trading session in the forex market. But knowing the trading session is not enough to ensure your success in the forex market. The professional traders in the forex market always trade with a solid trading strategy and they follow proper risk management factors in every single trade. As full time traders it’s very normal to have some losing trades so you need to make sure that you are not risking more than 2 percent of your account capital in single trade. For long-term success following the perfect money management plan is a must.
Conclusion: Traders are trading Forex all over the world and all the currencies are interrelated. Keep an eye on all the trading sessions of Forex to place trades in your favor to make money in this volatile market. When you trade the market make sure that you trade with solid trading discipline. Last but not the least always trade the higher time frame for quality trade execution.
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