When playing forex trading, you have to consider when is the right time for forex trading. Of the four market sessions, forex trading takes place from Monday to Saturday based on Indonesian time. You still have to choose the right strategic momentum for trading. The foreign exchange market hours are indeed open 24 hours, but you have to be observant to see the prime time during the time span in each trading session.

Aiming for Favorable Market Conditions

As you already know, forex trading has four trading sessions, namely the Australian session, the Asian session, the European session, and the American session. These four trading sessions are divided based on the activity of the economic industry in the four main regions of the world. Each session is opened in a relay every day, that's why the forex market can last for 24 hours.

Although there is no time limit, forex trading must be done at the right time so that you can make more profit. You need to aim for conditions where the forex market is in the most profitable position, namely conditions when there is active price movement. This means that there are a large number of currency pairs changing hands during that time.

Conditions where there is increased liquidity in the forex market tend to provide greater opportunities for traders to make a profit. Simply put, this liquidity can be understood as a condition where there is a consistent increase in demand for certain currency pairs. This liquidity will also affect the movement of currency prices in the forex market so that trading occurs a lot at these times.

The best forex trading time with the most profitable market conditions can be found during the session overlap, which is when one trading session overlaps with the forex trading time in the next session. An example is the overlap between the European session and the American session. The European session starts from 14:00 WIB to 23:00 WIB, while the American session starts from 19:00 WIB to 04:00 WIB. These two sessions have an overlap period from 19:00 WIB to 22:00 WIB which is also the forex trading hour with the most profitable market conditions.

Choosing the Right and Ideal Forex Trading Hours to Make a Profit

Avoiding High Risks

The next reason why you should pay attention to the right forex trading hours is to avoid the risk of loss when trading. You should not only focus on finding out when is the right time to make profitable forex trading without thinking about the possible risks that accompany it.

From the discussion in the previous point, it was mentioned that the forex trading time with the greatest chance of making a profit is during the overlap of the European and American sessions, but at the same time, this time also has a high risk potential. Why is that?

The overlap of the European and American sessions is known as the busiest forex trading time because it is a momentum where almost all traders in the four trading areas are active. However, during this time, traders' alertness levels can also decrease and make aggressive transactions. In addition, the rapid movement of currency prices and market trends influenced by trader decisions also make forex market conditions more dynamic.

These are the things that cause the possibility of loss at the most profitable forex trading time to increase. To avoid this high risk, you can work around it by cross-checking data, or considering economic trends and news in the country of origin of the currency owner that you want to buy and sell on the forex market. Analyze the graphs and currency price movement patterns carefully before finally making a decision.

Adjusting to Trading Plan Strategy

Continuing from the previous point, it is true that the most potential forex trading time is the riskiest forex trading time. However, if you already have a trading plan to trade at that time, then there is actually no problem. Make sure the trading plan you create has estimated the risk of loss and determined the buy/sell limit when trading during the overlap session.

When trading, try to be disciplined in your trading plan. Suppress the ambition to take big profits, focus on the profit target made in the trading plan, especially if the trading plan you have worked on has gone through many considerations and evaluations from the trading exercises you have done.

Choice of Determining Forex Trading Time

If you are still a beginner trader, here are some options you can consider to determine the right moment for forex trading, especially when you design your own trading plan.

  • Forex Trading Times and Routines

Find out what your daily routine is. Do you have other main jobs to do besides forex trading? If so, then your forex trading time should be adjusted to your main daily routine. Ideally before or after your work hours because this forex trading activity requires a lot of commitment. You will not only be required in terms of time, but also in terms of concentration, physical condition, and emotional.

You must be in really good condition when trading. If you are an office worker with working hours from 09:00 to 17:00 WIB, then you can try playing forex trading during the overlap between the European session and the American session, which is from 19:00 WIB to 22:00 WIB. This way, you also have time to rest enough to return to your activities the next day.

  • Forex Trading Time According to System

If it turns out that you have quite a lot of free time or have started to become a full-time trader, then you can take forex trading time that suits your trading system. There are at least two systems that you can apply, namely a short-term trading system or a long-term trading system.

The long-term trading system is not tied to certain times. That means, you can spend most of your time to continue monitoring the development of the forex market. While this short-term trading system focuses more on daily trading sessions, you must choose and focus on certain forex trading hours.

Best Forex Trading Hours in the World and Indonesia

  • Forex Trading Time According to Profit and Risk Targets

Determining the right forex trading moment can be adjusted to the trading plan you have created. The trading plan clearly states the profit target and risk limits. Therefore, you must monitor each trading session carefully, considering the opportunities and price movements of the currency pairs that will be traded.

Choosing forex trading hours in this way is much more objective because the benchmark is the target in the trading plan. You cannot ignore the matter of determining forex trading times. Adjust to other factors when determining the best trading times, including factors from market condition analysis results and other personal factors so that you can trade comfortably and generate appropriate profits.

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