How to Set a Trading Schedule according to the Forex Open Market Session – In this article we will discuss when is the right time to trade, namely by knowing the schedule of the Forex Open Market Session. What is a forex open market session? Thanks to our partner in Bali (Bali Traders Academy) on this cool article: 4 Forex Trading Sessions By Time Zone.
If you are a beginner, when you first look at the chart, you will be amazed by the continuous movement of currency prices on the screen. That is one of the factors that attracts the attention of many people to jump into the forex market.
But after a few months of trying it, most of them will realize how difficult it is to find profit opportunities in forex. In this business, we cannot go easy on our stomachs clicking Buy and Sell as taught in several books and online media. There is one important thing that these books and websites rarely tell us about, namely: TIME right.
The time referred to here is not related to any indicators. We don’t need to use any tools to know when is the best time to trade forex. If you read the article on the link above, you will realize that forex has an open and close schedule like markets, shops, and offices in general.
4 Forex Market Sessions
The forex market session is divided into 4 parts, namely: Sydney, Tokyo, Londonand New York. Why are there only 4? Isn’t forex a free market?
This session division has nothing to do with mapping or geographic location. The trading session is divided based on the habits of active market participants in transacting. Incidentally, the active time was at the opening and closing hours of the country above, and in the end it was agreed to be 4 forex market sessions. Here’s the time division:
|4 Forex Trading Sessions – Summer. By: Bali Traders Academy|
The picture above is a schedule for the open forex market session in the summer. Anyway, in the forex session, there is a term DST (Daylight Saving Time), namely the time difference due to the change of seasons. In Europe, the nights are longer in winter. Summer is usually April to October. The hour change is only one hour difference. Here is the schedule for winter:
|4 Forex Trading Sessions – Winter. By: Bali Traders Academy|
For winter, the Tokyo session is unchanged. The Sydney session is back 1 hour, the London and New York sessions are 1 hour forward.
Setting Forex Trading Schedule
After knowing the division of the market session, now we can start compiling a trading schedule. Here’s how:
- Relax time. The first thing that must be prepared is relaxing time. Example: if you work in the morning, you should set a trading schedule during lunch hours, afternoon coffee hours, or after dinner. In addition to time, you should also consider time with family and friends.
- Analysis Preparation. After knowing the relaxing hours, then determine the time for analysis. Pro traders usually check the news release schedule in the morning before coffee or breakfast.
- Analysis Revision. If you feel that your analysis is not right, don’t hesitate to ask or seek opinions from other sources such as: DailyFx, TradingView and many more. The revision phase usually resumes before the London Session begins.
- Execution Time. After your analysis is complete, the next step is execution. Execution time can be selected which is the most active: London session and New York. Feel free to take a position. If wrong there are still many opportunities the next day.
That’s how to set a schedule to transact in the forex market. If you have questions and comments, you can submit them through the comments column below.