Time And Timing In Day Trading - Comprehending The Phases And The Perfect Times To Trade Currencies And Futures


It is of great importance to understand the time that you choose to trade in and know what you can potentially expect at that time of day.

This differs for each instrument so it is imperative to learn market behavior for your particular instruments. I generally trade only 3 instruments the DAX, Euro/USD and the GBP/USD and am familiar with their patterns during the trading day. Other instruments act differently so I will only trade them (and I do occasionally trade S&P, WTI, , and other currencies) after I've studied their time related action.

Timing matters are not easy to crack and sometimes it's easier to purchase a trading system, not so that you can follow it stupidly but instead use it to supplement your own reading of the market. Always best to read forex trading system reviews. A systems I use regularly to supplement my decisions is forex rebellion. It fits in nicely with my MT4 setup and adds confirmation to the timed entry.

The favorite time to trade the DAX is near the London open at 03:00 EST, as the open commonly brings a massive volume surge and it's a piece of cake time to scalp.

It is often possible to achieve a gain of 20 - 40 points in the first 30 minutes of trading. As my daily target is 30 points and it is often hit within half an hour, I can then relax and look for perfect set ups that will not reduce the profit.

Another good time to trade the DAX is around 13:30 UK time (08:30), but need to look out for any news announcements as this is the time most US releases come out (CPI, GDP, NFP etc). It it a pretty volatile period and once again it's easy to capture good moves then.

About 60 minutes after the markets open (London and NYC) we commonly see consolidation and I tend not to trade these periods, it can be quite frustrating.

You must have noticed how quickly time goes by when you are in a trade that is going against you and how slow it is when a trade you've entered just refuses to move.

Chances are that it's the same length of time, it's just our mind playing tricks on us. In my view, I look for a trade to move my way within 2 bars (1 min, 5 min or any other time frame you trade). If it stall I close and wait. My experience is that if a trade doesn't move your way quickly, it is a potential loss. Practice patience before entering a trade and not after you've entered it.

Timing is a separate topic and depends on your trading method, one of the methods I use, is reversals at known pivot points. This is a rubber band type of trade and routinely a person can catch a reversal and a new short term trend.

In these cases, with scalping, if you have a particular price area you are targeting, timing makes a major difference, enter too early you may get stopped out, and if you enter when the price has moved you will miss out.

Bottom line, remember that trading is 90% is in the mind, and if your mind is not focused or you're not in a good state it's best to not trade, better to recover, and then go back.

I use meditation, and always make sure I am completely calm and confident before I trade. Lately I've been using a subliminal video and I find it's helpful, 10 minutes of watching and I am ready to make money without hassle.

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