Simple Ways to Identify Trends

There is a great deal of nonsense written about trends and using trend lines. Quite often - and maybe even the majority of the time trend lines aren't even drawn on a trending move and traders then cry when they lose money because of a trade they had based on the break of their line.
To be honest the concept of a trend is really one of the most simple tools in a trader's toolbox but the definition of a trend is normally forgotten and could actually help your trading considerably. Let us just cover the definition of a trend:
Up trend A sequence of higher highs and higher lows
Down trend A sequence of lower highs and lower lows
It really couldn't be much simpler than that Sometimes - and in spite of the number of lines that traders draw - this doesn't happen very often, a supporting line can be drawn across the lows in an up trend or above the highs in a down trend.
In most cases you can consider trading a break of the trend line. At this point you do have to be a little careful since if the previous low in an up trend (previous high in a down trend) is not exceeded there is still chance that price can go and retest the trend line and occasionally this can be at a new extreme.
You can see in this example how even though the trend line was broken the prior low in the sequence of higher lows was not penetrated. Following this price rallied to retest the trend line twice, the second time at a new high before it finally broke lower. You would normally expect momentum indicators to be showing a divergence at this point.

Part 2. Managing Your Money Using Stop-Loss

Okay, on to the advantages of futures traders employing protective buy and sell stops. As I said above, the major advantage of using protective stops is that--before you initiate the trade--you have a pretty good idea of where you will be getting out of the trade if it's a loser. If your trade becomes a winner and profits begin to accrue, you may want to employ "trailing stops," whereby you adjust your protective stop to help you lock in a profit should the market turn against your position.
On specifically where to place your protective stop upon entering a trading position, one of the most popular and effective methods is to find a support or resistance area that is within your loss parameter for that particular trade. Here's an example: A trader decides to go long corn futures and he does not want to lose more than $250 per contract if the trade turns out to be a loser. He should try to find a technical support level that's around 5 cents below the present market price, and then place his sell stop just below that support level.
I generally use the above formula when I place my protective stops. However, I know that the local floor traders also know where it would be most logical for most traders to place their protective stops. So, I will "tweak" my stop placement a bit to reflect this. For example, if I decide to go long corn and there is a solid support level that is within my loss-tolerance parameter, I will set my protective sell stop maybe a couple cents below that support level. My thinking would be that most other traders would set their protective stops about a penny below that solid support, and if floor traders were going to gun for stops, then they may not be able to hit mine if it's a couple cents below the solid support level. The disadvantage to this theory is that your stop may be hit anyway, if there were a bunch of stop triggered above my own stop and pushed prices lower. Also, my losing trade would be about $100 or $150 steeper per contract than if I had not tweaked my stop.
Only rarely will I call my broker and change the position of a protective stop in a trade in which I'm "under water"--meaning it's a losing trade at the time. That would defeat the purpose of making your decision on how much of a loss you'll absorb BEFORE you make the trade and are in the heat of battle during a trade. Conversely, on winning trades that I have going, I may call my broker every day and tighten a protective stop, if the market is moving rapidly.

Employing Stop-Loss to Manage Your Money

Hi

There is no absolutely perfect money-management tool in futures trading, although purchasing options on futures does limit your risk of loss to the amount paid for the option. Purchasing options does have its disadvantages, however, and I won't go into that in this feature. What I will focus upon in this educational feature is the placement of protective stops (a sell stop if you are going long and a buy stop if you are going short) in futures trading. Protective stops are not a perfect money-management tool, but they are very effective in helping to solve one of the most important elements of futures trading: When to exit a position.
Before I discuss the advantages of using protective stops, I want to discuss a disadvantage about which many long-time traders are fully aware: Floor traders in the pits "gunning" for stops. This is a real phenomenon whereby "local" floor traders (those who trade for their own account) think they know where most of the resting buy or sell stops are located, and then attempt to push prices into those stops, set them off, and then let the corresponding price move run its course, only to then take profits on that move and the market price then returns to near levels seen before traders went gunning for the stops. This action by floor traders is not illegal or even unethical--it's just a part of futures trading. These floor traders have to pay a lot of money (or their sponsor pays their fees) to trade in the trading pits on the exchange floor. They do have some advantages over off-floor traders and, importantly, they also provide the needed market liquidity that all traders and hedgers appreciate.
Floor traders gunning for stops is more an art than science, as market conditions have to be just right for their efforts to pay off. For "local" floor traders to push a market in their desired direction, outside fundamental factors need to be about in equilibrium and not having an influence on market prices. For example, any floor traders gunning for sell stops just under the current market price won't get the job done if there were a bullish fundamental development that would pushes prices higher. Remember, no one group of traders--not even floor traders--can influence market prices very much or for very long.
Also, sometimes floor traders think they know where stops are located, and when they push a market and try to force a bigger price move, they do not find the stops and then they are forced to cover their trades at a loss.
A longtime friend of mine and former Chicago Board of Trade grain floor trader, John Kleist-­now a highly respected grain and livestock market analyst--told me the following about locals gunning for stops: "Back in the 1970s and most of the 1980s were really the 'last hurrah' for locals wanting to gun stops. And it basically was in the 1990s when better (and more transparent) communication allowed important news to filter 'down' to the pits, rather than 'up' from the trading floor. Locals gunning for stops now is usually more effective in illiquid trading pits, such as the hogs or bellies--and less effective in soybeans and wheat, and very difficult in the corn pit. Gunning for stops has been replaced by locals coat-tailing the commodity funds and exaggerating price moves. Maybe that's the same effect but done a different way. Stops have to be relatively nearby current prices--i.e. support/resistance areas commonly used as 'public' stop areas, if the locals are to be effective. And, of course, if near major moving averages in the case of the funds."

Still on Trading News

Hi

As I was still talking about trading the news, for you who are newbies and professionals, I strongly believe that you will never wish to lose money on trading rather you prefer winning in single rows trades. You can always win trading news if you know and pay attention to all the economic indicators that tend to affect the market. Your trading plan should not be much different from the initial setup because your goal can be achieved in 10min to 20min but if you fail to follow your plan, your greed can lead to losing due to volatility of the market.

It is very significant to trade country zone with their news time. If you don't know the direction of the market, wait for some minutes before you enter a trade though you will miss early pips but it is better than losing. If you are able to catch some pips. It will be advisable to exit even before the professionals start making decision on reversing.
Be a smart traders since you are there to catch few pips. You are on your way to top trading if you can stick to your rule.

... see you Later
Abiodun

http://www.forexliteracy.com/

Trading the News

Hi
So many people always ask me if they can stick to only one trading method between Fundamental and Technnical Analysis. My reply is always blunt- Choose what works for you. I think I will provide you with the basis of the .....

Trading the news is becoming a popular technique to trade the forex markets … and why shouldn’t it be? Time and time again you see currency pairs move 50 to 100 pips within minutes or even seconds after a major news release. When you see that, I bet you’re thinking, “50 to 100 pips!? That’s easy money!” Maybe it is, and maybe it isn’t. It all depends on how prepared you are to trade a news release. Trading news releases can be a significant tool in your trading arsenal. If you want, it can be your only weapon altogether. Economic news reports often spur strong short-term moves in the market, which are great trading opportunities for breakout trader.

To successfully trade the news you have to be familiar with the economic data of countries. The economic data such as:
Employment Growth
Interest Rate decisions
Trade Balance
Gross Domestic Product
Retail Sales
Durable Goods
Inflation reports (Consumer Price Index and Producer Price Index)
Foreign Purchases report (TIC Data) and many more and the time in which all these data will be repoted.

When the News be Released?

The list below displays the times when the most important economic data are released for each of the countries. Make sure you know them or go broke.
Symbol
Country
Time (GMT)
USD
United States
13:30 - 15:00
EUR
Germany
07:00 - 11:00
EUR
France
07:45 - 09:00
EUR
Italy
08:45 - 10:00
JPY
Japan
23:50 - 04:30
GBP
Great Britain
07:00 - 09:30
CHF
Switzerland
06:45 - 10:30
CAD
Canada
12:00 - 13:30
AUD
Australia
22:30 - 00:30
NZD
New Zealand
21:45 - 02:00

To get the comprehensive detail of news and time with simple interpretation and analysis. Visit http://www.dailynews.com/ http://www.forexfactory.com/ or http://www.dailyfx.com/

Abiodun

08050200894

www.forexliteracy.com

Euro Trending

Hi Friends

Before you read I want to ask you if you know this general maxim in forex that says ' trend is your friend' can you see what euro trend has become? Last Friday we said Euro set a new high but does it end there CAPITAL NO! Euro is still trending up till today. I believe great things are about to happen. As a professional trader, I have always be saying that you are not in the market to catch all those pips but work according to your trading plans. Euro trend up today does not mean it will continue. Economic event will tell and force of traders can also play a vital role.

I think its about hitting a resistance and head down for some moment. Work with all your tools, news, bar patterns, pivot point, macd divergence, moving average and many more before you initiate any trade.

See you at the top!

Abiodun Babalola

08050200894

Euro Hits All Time High

Hi

Just imagine what has been happening since Tuesday. One the readers of these articles called on wedsnesday 12th sept, and I told him to place buy on euro. He was reluctant at first but i think he later did. See what happened, the market penetrated R1 and R2 that day. But someting else happen...

The EUR/USD traded to 1.3926 in London this morning, the highest value in its history. The USD has been battered across the board as traders try to determine just how bad things are for the US economy. On Friday, we learned that the US economy lost 4,000 jobs last month. That’s the first negative number in 4 years, which has sent the dollar plunging, and introduced enormous uncertainty in the FX market. More uncertainty surrounds what the Fed will do at its next meeting on Tuesday, and uncertainty breeds volatility—currently, volatility in the USD/JPY is the highest it’s been in over 5 years. What’s going to happen to the US dollar on Tuesday? Can the Fed save the buck? Or the economy? Everyone’s itching to know

This is part of what you gain from us. Can you see what I was was explaining on the chart

Abiodun

08050200894

Forex Tools

Hi Friends
Long Time! It is all about having great fun with the market this day. You are really missing if you are not trading right now because great things are happening in the forex market. Our forex tools and strategies work like magic. We are not saying we don't lose but at lease more wins than lose.
I can i sure you that you will make more money by reading our daily tips. Every new concepts is publised here without reservation.
Together we shall succeed

Abiodun
www.forexliteracy.com
08050200894

Tom DeMark Trendlines

Hi
If you have been closely monitoring my mentorship, you will discover that my system is very simple. And Tom DeMark Trendlines is very important trading tool i can explain.
Tom DeMark is a specialist in the field of technical market analysis and his best-selling book "The New Science of Technical Analysis" released in 1994 spells out some innovative techniques when it comes to the use of trendlines.
Much Forex information on the internet is of a general nature, and many articles are written about Forex by individuals who are not traders themselves. Tom DeMark on the other hand has had a long career with institutions trading stocks, futures, currencies and options.
His guidelines on the use of trendlines are very specific and they can be helpful to the newer trader who is searching for reliable Forex information on how to use standard indicators.
Here is a brief step-by-step description of how to draw DeMark trendlines:
Note: The term swing high and swing low (also called cycle high and cycle low) refers to the following:
In An Uptrend: A swing high is the wick of a candle that is higher than the wick of the candle to the left and right.
In A Downtrend: A swing low is the wick of a candle that is lower than the wick of the candle to the left and right.
Obviously the more candles to the left and right that are higher in a swing low or lower in a swing high makes the swing or cycle more significant.
An uptrend is where price is making higher highs and higher lows. A downtrend is where price is making lower highs and lower lows.
Drawing DeMark Trendlines
Drawing Trendlines In An Uptrend
Examine the bottoms of the candles on your chart and identify the most recent candle wick that is lower than the candle wicks to the immediate right and left of it.
Look left on the chart, and identify the previous low candle that has candle wicks higher to the immediate right and left of it which is lower than the current low candle.
Now draw a line from the current lowest candle to the previous lowest candle (drawing from right to left).
Now take the end of the newly drawn line which stops at the current low candle and extend it forward some distance (drawing from the present position to the right).
Drawing Trendlines In A Downtrend
Examine the tops of the candles on your chart and identify the most recent candle wick that is higher than the candle wicks to the immediate right and left of it.
Look left on the chart, and identify the previous high candle that has candle wicks lower to the immediate right and left of it which is higher than the current high candle.
Now draw a line from the current highest candle to the previous highest candle (drawing from right to left).
Now take the end of the newly drawn line which stops at the current high candle and extend it forward some distance (drawing from the present position to the right).
You have now drawn a Tom DeMark trendline.
This can now be a reference point for future price action. It will often be observed that price will come and check this level. If it breaks through, it can mean a change in direction, the significance of which will depend on the time frame being used.
Trendlines drawn on 5 minute or 15 minute charts have much lesser significance than trendlines drawn on higher time frames such as the 1 hour, 4 hour, or daily.
Caution Required
Much Forex information extols the virtues of trendlines as an indicator of possible future price action.
Mr. DeMark certainly has made this a science and his detailed approach to drawing trendlines is certainly more accurate than just drawing general trendlines along the bottoms and tops of trends according to the way the eye sees.
However, trendlines in themselves do not indicate where high probability trades can be taken.
It is important to use a variety of indicators before pulling the trigger. Examining previous levels of support and resistance is probably far more significant in determining where price is likely to hesitate that watching trendlines.
However, they can be useful. If you find a key support or resistance level also coincides with a Fibonacci retracement or extension level which is also at an intersection with a trendline, then you have built a reasonably solid case for a trade.

Abiodun Babalola

http://www.forexliteracy.com/

AUTOMATED TRADING

Hi

There are several people who call daily to ask if they could use automated trading in trading system. I want you to personally that before you use automated trading system you must be familiar with the platform. There are many trading platform stations. It is not in all you can use automated trading. basically we have

MetaTrader4-based Solutions

Global Trading System

Omega Research-based Solutions

ProTrader-based Solutions

All these have different ways of working . Working with each of the platform is different from another. But if you want to use automated trading system, these are my suggestions.

1. Test the program in a script tester (if such facility is available in your IDE) several times, varying the chart period, the instrument being traded, and the program settings. Try to model the conditions close to the actual state of the market.
2. Test the script in a demo account (if such an opportunity is available). At this stage, it is important to let the program run for a sufficiently long time (it is defined by the period of the chart). Do not stop the test if the program has at once produced a big gain or a big loss. The usefulness of the script can only be estimated after it has worked for a significant amount of time.
3. Run the script in the live account. At this stage, it is not advisable to interfere with the script-for example, close the positions it has opened or modify their settings-or you can upset the internal logic of the program.

Abiodun Babalola

08050200894

http://www.forexliteracy.com/

MOVING AVERAGE SYSTEM

Hi

Among one of the important concepts a new forex trader should know is what a Moving Average means, how it's calculated and what its use as a trading indicator is.
Moving Average is defined as a technical indicator that shows the average value of a particular currency pair over a previously determined amount of time. This means, for example, that prices are averaged over 20 or 50 days, or 10 and 50 min depending on the time frame you are using at the moment of your trading activity.
As an averaged quantity, MA's can bee seen as a smoothed representation of the current market activity and an indicator of the major trend influencing the market behavior.
The basic mechanics of how Moving Averages can tell you where the forex market is moving (up or down), at the moment of your analysis is by considering two different time frame Moving Averages and plotting them on the forex chart. It is very important that one of these MA is over a shorter time period than the other one; let's say one will be over a 15 days period and the other over a 50 days period. Most trading station software available by a number of brokers will let you do this plotting and much more.

Trading with SMA which simply means SIMPLE MOVING AVERAGE and EMA which simply means EXPONENTIAL MOVING AVERAGE are the common moving average. They are both representation of the current market activity and as an indicators. Trading moving average is different from traders to traders. I will share my methods of trading the moving averages with you soonet.

Thanks

Abiodun Babalola

www.forexliteracy.com

Choosing the right broker

Hello

Most investors who trade Forex stocks use a broker. A broker is an individual or a company, who buys and sells stocks according to the investor's wishes. Brokers earn money by collecting commissions or fees for their services.
You should check that a broker is registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud or abusive trade practices. A Forex broker also needs to be associated with a financial institution, such as a bank in order to provide funds for margin trading. Picking the right Forex broker for you will take some work on your part. There are brokers who charge a flat fee and some that charge commission. It may be a good idea to talk with friends and business associates about their brokers. You may get some good leads, and you're certain to hear who to stay away from. There is nothing like word of mouth advertising.
If you are thinking of investing online, you could choose several online brokers and contact their help desks. Seeing how quickly they respond to your questions could be key in how they will respond to their customers needs. If you don't get a speedy reply and a satisfactory answer to your question you certainly wouldn't want to trust them with your business. Just be aware that as in other types of businesses, pre sales service might be better than after sales service.
Before you choose an online broker get a copy of their online demo account. What features are included? Is the software reliable? Does it offer automatic trading? Are there extra software features that cost more?
Before setting up an account with a Forex broker you will need to do further investigation. How quickly will these brokers execute your buy/sell orders? What is their policy on slippage? What are the transaction fees? What is the spread, fixed or variable? What are the margin requirements and how are they calculated? Does the margin change with currency traded? Is it the same for mini accounts and standard accounts?
Don't forget to ask about minimum account balances and interest payments on account balances. Make sure that your funds will be insured.

Don't forget look before you leap

Abiodun Babalola

08050200894

Still on Trading strategies

Hi Friends

If you have not forgotten, I was talking about strategies of more winning in currency trading. I know you will want to ask me if you can stay on only one method either fundamental or technical analysis. You can probably make more money trading the two because the understanding of both means a lot to the success of this business. Nobody can tell when you will have breaking news that will do wonder to the market. President George Bush will never tell you when he will be releasing another bomb. You have to put all your strategies in place. Do you understand that? ok

Fundamental analysis may in the first place render all the indicators you rely on useless when you have a very strong impact news. The news that deals with economy data and events. Watch Out!

Beware of those time when you are expecting the news

Trading Techniques

Hi Friends

Before you read this page I want you to understand that every trader especially professionals have their own special strategies which work for them all the time. This means that you should always be on the look out to develop your own special strategies. I have, with time develop some strategies that have been proven working by those people I trained and they have commended and loud the principles though they are very simple and straight forward that even a 5-year old baby can understand. I will be sharing this method with you

You may want to take this as today' s tonic. Fundamental has to with news. Some people only trade news and nothing else. I will not advise you to do this there are enough moneyto be made trading technical and fundamental analysis
You should be on you way to visit yahoo! news daily, dailynews and forexfactory.com for expected news for the week if you are really serious about making money in this business.

Thanks

Abiodun Babalola

08050200894/017417621

http://www.jobsbankers.com/

Trading Methods

Hi Friends

Whether you a new or professional trader, you have found a new place to learn new things as the world of forex market is taking a new dimension daily. So many traders all over the world have developed different strategies or techniques, no matter the strategy or technique it will only fall into the two categories of trading: Fundamental Analysis and Technical Analysis. The fundamental Analysis that has to do with trading the news and events and Technical Analysis which as to do with the use of charts and indicators. Although as a professional trader you must know that event override any f0rm of technical indicator at a very significant time. Even if you have developed a specialised indicator that never fails. It is obvious to professional all over the world that event can cause a great havoc to the forex system. In this regards you must always give way for news at interval.

You can trade your way to the top if you follow the simple rule currency trading! I will be sharing with you the secrets to profit trading. Stay in touch

Thanks

Abiodun Babalola
08050200894

My Trading Plan

Hi Friends
You have always asked me to share with you my trading plan. Relax! I will surely share my Plan with you --- together we shall get there!
A trading plan is an official written plan of your trading method and techniques. It is an excellent way for getting clear picture of specifics of how you are going to trade.
The trading plan describes the type of the game because they have bigger risks than should and they are impatient, distracted or fearful.
When you are writing your trading plan, don't forget to include the following:
· Time frame you will trade in
· The currency you will trade and its characteristics
· The lost limit per trade
· The objective events that will trigger your entries
· The objective event that will rigger your exits
· The loss you can withstand on a trading account.
FOR EXAMPLE
TRADING DAY: MONDAY, TUESDAY, AND THURSDAY.
CURRENCY: EUR/USD
RISK PER TRADE: $20 PIPS
SET UPS FOR ENTRY: WITHIN 5 PIPS OF A PIVOT POINT AND SUPPORTED BY 2 OTHER INDICATORS
EXITS FOR PROFITABLE TRADES: PROFIT AT PIVOT POINT OR WHEN I SEE REVERSAL BARS
LOSSES THAT I CAN TAKE: 5 LOSSES

I think you understand that!
Abiodun Babalola
08050200894/017417621
www.jobbsbankers.com

Why People?

Hello Friends

I think its time for me to provide answers to so many of my friends and colleaques in forex business. I know is not a new thing again but you will always realise that the only way people remember important things is through repetition. I only want to sound it as part of my way of reminding you! and if you are a new trader you will definitely find it more interesting. I ve made to believe that forex is something different from what its now. Today I promise you to give all you need to succeed in this line of business. Read on..........

I believe Forex trading is 50% psychology. When trading you should always surround yourself with positive people. Never boast about you winnings. You should ground yourself very well for the task ahead. Forex Trading is not a part time job that you want to do at the corner of your house. It is a very serious business. You must give it total attention as you will to any other job. You must prepare you mind and body for it. Make sure your energy is the highest level when trading so that your eyes will not overlook those spinning top, railroad tracks and other bar/candle patterns. Your trading plan should always be put in place even before start trading.

I have come across hundred of people who do not have an idea of what trading plans simply means, they think they can play it safe. But professionally, i know everything needs proper planning however forex trading is not an exception.

Just keep reading I will share with you my trading plan

Abiodun Babalola
08050200894, 017417621

http://www.jobsbankers.com/

Psychology of Trading

Hi Friends

I will not bore you with story this time, i just want you to know that forex is not gambling and it is not a get rich quick sydrome. You earn what you work for with the kind of passion you create for it

I have seen many traders who are just what i can describe as gambler because they believe single thing they read online on newspaper and believe they can solve all their problems trading foreign currency. They forget that everything require patient. You can win in forex market and as well loss. The only thing you need is the average of your win and loss. If your win is more thn your loss, then you are a successful traders.
If you win most time never believe you will not loss but keep to you winning strategies if when it fails sometimes you will be sure that it will work later beause it has worked before.
Don't be a greedy trader! Trade with amount you can afford to loss

Thanks
Abiodun Babalola
08050200894/017417621

www.jobsbankers.com

Best Trading Time for Nigerians

Hello
I know for some of you this may sound as repetion but some people still ask me to give them precise time they can trade in Nigeria time. That's why you will be reading this again. You must understand we are not created the same way. If you want people to succeed in information you provide for them. You must give them a hand in its achievement.

If you a forex trader in Nigeria, you have to know when the market is more volatile because the real money is made in a very high volatile market. The forex market as you most have read in my other post, the trading session of London, Europea, New York and Asian. The market is more volatile in Nigeria 8.00am Nigeria Time when London Session opensand the most tradable pair is EUR/USD but you can may be in the market before then in order to catch the early pips. The more Volatile time is when the London session overlap the new York Opens which is 1.00pm Nigeria Time. Beware of 1.30 pm Because News comes out that Time!

I still remain Yours

Abiodun Babalola

08050200894/017417621

http://www.jobsbankers.com/

WHY MINI ACCOUNT?

A mini forex account is designed for those new to online trading and those with limited investment capital. Those with less than US$5,000 often favour mini accounts although regular accounts may be opened with a minimum of $2000-$5,000. The amount varies from broker to broker.
A mini forex account can be opened with a minimum of US$100-500 and this figure varies between brokers.
A mini forex account is intended to introduce traders to the excitement of forex trading while minimising risk.

Some of the brokers that accept mini account include: http://www.fxsol.com/:$250, http://www.marketiva.com/:$100, http://www.fxcm.com/:$300. It is always believed that you should not invest the money you cannot afford to lose in forex market.
A mini forex account can be opened at anytime but many traders practice on a demo account first to test their trading strategies and techniques.
Trading size is normally 1/10th the size of a regular account. Some brokers have smaller lot sizes. This reduces the risk associated with forex trading.
Margin requirements differ depending on the broker. The NFA states the margin should be no less than 1% of the base currency traded. However not all brokers follow these guidelines. Some brokers offer margins as low as US$50 per lot on their minis.
Some brokers have software in their Trade Stations that automatically calculates the required margin while others manually set the margin and vary it accordingly.
The CFTC is enforcing a 1% margin requirement for registered FCMs and their affiliates that only offer trading in the Forex Market.
The new NFA rule requires a minimum 1% margin at all time to maintain an open trade. (Note this may change from time to time so although we use 1% as the example at some stage in the future the margin maybe different. However using similar calculations one can easily calculate the new margins)Some deal stations automatically calculate this according to the formula and hence the margin requirements are continually varying

Best Trading Time

Best Times To Trade Currencies
Forex is a 24 hour market and there will be good setups for profitable trades in the Asian, European and US sessions. It pays to look at historical price data on forex charts to see what time of the day you could be watching the market and what time you could be doing something else. The aim is to trade when the average trading range is worthwhile and stay out of the market when price is in a narrow sideways range.
LONDON SESSION
London Trading Session London opens at 8 am GMT or 3am EST.Closes at 4 pm GMT or 11am EST.The most active pairs during this session are EURUSD with 39% of the trading volume, GBPUSD with 23%, USDJPY with 17%, USDCHF with 6% and USDCAD with 5%.
European SessionEurope opens at 7am GMT or 2am EST,Closes at 3 pm GMT or 10 am EST.The European session is the most volatile session most of the time.
NEW YORK OPENS

New York Opens at 1pm GST or 8 am EST.Closes at 8pm GMT or 3pm EST.
New York is the second largest forex market place.The busiest time is 8am to noon EST. News releases can result in a volatile market. Trading activity usually winds down after the U.S. afternoon trading period.
ASIAN SESSION

The Tokyo session opens at 1am GMT or 8pm ESTand closes at 8am GMT or 3am EST.Sometimes volatility is low and sometimes good moves occur. The USDJPY is the most active pair with 78% of the volume followed by EURUSD with 15% and EURJPY with 5%.

BENEFITS OF FOREX

1. 
   Take control of your own finances.Beat the returns from mutual funds, hedge funds or managed funds.
   Start-up costs are low when compared with day trading stocks or futures.
   Forex is the world’s largest market. No one can corner the market.
   With a trading volume of around $1.9 trillion dollars a day, no single entity can control the market for an extended period of time.
   You can make money when the market is going up or down.
   Forex markets trade 24hours a day. There is no waiting for the opening bell.
   Technical analysis works very well and the market trends well.
   Forex offers up to 100:1 leverage but it is wise avoid very high leverage if you can afford it. Stocks offer 1:1 or 2:1.Futures offers 15:1 leverage
   The forex market is the most liquid in the world. Traders can almost always open or close a position at a fair price.
   You can make big money working only a few hours a day or week on your computer.
   You can trade from anywhere in the world where there is an internet connection.
   You can gain experience without risking your own money by using a free demo account.
   When trading stocks, there are over 40,000 stocks to choose from. In forex, you can choose one or two currency pairs and focus your analysis.