Forex: Trading a 24-Hour Market

Filed under: Learn Forex Trading |

 

Today, I took you through a forex price action setup that would have been successful had we seen it, but unfortunately, I had been outside cutting the lawn when the setup had formed! Now, and as I mentioned during this article, unless we sit at our trading screens 24 hours a day (which is impossible unless you work as part of a trading ‘team’), there are always going to be trades that we miss. However, I am aware that a lot of beginner traders do feel like they have failed when they do miss a good setup, so I am writing this today to try and set the record straight.

 

The forex market runs from Sunday at 11 pm UK time (currently but this changes when the clocks go back an hour) to Friday at 11pm. The market is therefore closed between 11pm on a Friday to 11pm on a Sunday, which gives us all a nice break. However, excluding this weekend break, the forex market is truly a 24-hour market and trades never stop being exchanged.

 

This is a really great thing for most people because if you have work or other commitments, then you can create a trading schedule that suits you. If you do have a lot of time and want to dedicate most of it to trading, then you can do that also. However, you must still try to create a set time to trade from. What you should not do is trade every waking moment and try to catch every single possible trade setup. While you might think that this will make you rich, it will probably have the opposite effect and you will both over-trade and make bad trading decisions due to fatigue.

 

The whole point of trading is to improve your lifestyle – so go to the gym, play some golf, and do not spend too much time looking at your screen. Look at your charts once every hour at a maximum, with once every four hours also being acceptable. This will be a much better strategy to take rather than trying to catch every single trade.

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