Time And Timing In Day Trades - Comprehending The Phases And The Best Times To Trade Futures And Forex

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Time And Timing In Day Trades - Comprehending The Phases And The Best Times To Trade Futures And Forex

It is of supreme importance to comprehend 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 study market behavior for your particular instruments. I regularly trade only 3 instruments the DAX, Euro/USD and the GBP/USD and am familiar with their patterns throughout the trading day. Other vehicles behave differently therefore I will only trade them (and I do infrequently trade S&P, WTI, , and other currencies) after I've examined their time related patterns.

Timing issues are complex to crack and occasionally it's easier to buy a trading system, not so that you can follow it blindly but instead use it to augment 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 most suitable time to trade the DAX is close to the London open at 03:00 EST, as the open more often than not brings a massive volume surge and it's not hard time to scalp.

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

Another good period 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 time and once again it's easy to capture good set ups then.

About 1 hour after the markets open (London and NYC) we normally see consolidation and I tend not to trade these times, it can be quite tedious.

Surely you've noticed how fast the time goes by when you are in a trade that is in the red and how slow it is when a trade you've entered just refuses to move.

Of course it's the same period of time, it's just our mind playing games with us. To my mind, I expect a trade to move my way within 2 bars (1 min, 5 min or any other time frame you trade). If it just hovers around I get out and wait. My experience is that if a trade doesn't move your way quickly, it is a less probable trade. Wait patiently before entering a trade and not after you've entered it.

Timing is a separate topic and depends on your trading methodology, one of the methods I use, is reversals at known pivot points. This is a rubber band sort of trade and often you can catch a turning point and a new short term trend.

Under these circumstances, with scalping, if you have a particular price area you have designated, timing makes a big difference, enter too soon you may get stopped out, and if you enter when the price has moved you will miss out.

The thing is, remember that trading is 90% is a mental game, and if your mind is cluttered or you're not in a good state it's best to stay out, better to recover, and then continue.

I use meditation, and continuously make sure I am completely calm and confident before I trade. Lately I've been using a subliminal video and I find it's beneficial, 10 minutes of watching and I am ready to make money effortlessly.

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