The forex markets are open 24 hours a day between Monday and Friday which means that anyone in the world can conveniently trade at some point during the day. However, some times are more volatile and profitable than others.
The most volatile period of the day is between 1.30 and 4.30pm UK time which is around the time that US traders start trading the markets. More significant is the fact that a lot of economic data releases are announced during this period, which can cause dramatic swings and increased volatility in the currency markets, particularly the dollar-related pairs.
However although volatility is good to an extent, it's not necessarily the best time to trade because these announcements can cause wild and unpredictable swings which generally does not equate to profits. The resulting move in the more significant of the data releases will often counteract conventional technical analysis as well making it extremely difficult to make any profits.
The only people to benefit from trading during this period are the tiny minority of news traders who are capable of benefiting from such swings.
For most of us the ideal time to trade is when you get large market moves and trends that are more predictable, conform well to technical analysis, and is during a time when there are no major economic news announcements scheduled.
Luckily such a period does exist and it is basically the start of the European trading session between 8.00 and 12.00 (or you could even say 6.00-12.00 because you often get strong moves from 6.00 onwards).
This is an excellent time to trade because it's the most heavily traded session, so you get decent sized moves, and it's generally free of any market-moving announcements so you can concentrate fully on technical analysis.
Unfortunately not everyone around the world can trade during this time due to time differences and the inconvenience of trading at an awkward time of the day, so for those people the next best time to trade is during the Asian session. The Yen related pairs in particular are the best pairs to trade during the Asian session, as you would imagine, as the other major pairs are extremely quiet during this time of the day.
So in conclusion, the best time of the day to trade the forex markets in my experience is the start of the European trading session where you get large swings and few market-moving announcements to contend with. If you're trading the major currency pairs, you will find that the other times of the day are either too quiet or too volatile, unless you're trading Yen pairs which move strongly during the Asian trading session.
Related Articles
Can Part-Time Forex Trading Be Profitable?
By: James Woolley | 13/05/2008 | Currency Trading
Forex trading can be difficult at the best of times. Even if you're doing it full-time and sitting at a computer screen all day closely monitoring your positions, it can be really tough going. So can you really make money from forex trading on a part-time basis?
Should You Use Multiple Timeframes When Trading Forex?
By: James Woolley | 26/05/2008 | Currency Trading
Many people new to forex trading start by just trading one single timeframe, whether it's 5 minute charts, 4 hour charts, or daily charts, for example. However is this really the best way to make money from forex trading?
Long Term Forex Trading v Short Term Forex Trading
By: James Woolley | 13/06/2008 | Currency Trading
A lot of forex traders trade the markets several times a day or at least several times each week, but long term forex trading can be equally as profitable, if not more so. You only require one highly profitable long term position to match the hundreds of smaller positions you may take.
Professional Forex Managers and the 4 Advantages to Using Them
By: Aaron Stokes | 03/09/2007 | Finance
Find out why Managed Forex accounts are one of the hottest topics amongst investment cirlces, and how they can benefit you in your endeavors towards stable and strong financial growth.
The First Lesson I Learned As A Forex Trader
By: James Woolley | 22/10/2007 | Finance
I started trading forex a few years ago now after having previously traded the FTSE 100 index and specific shares. Just as in these other markets there is one big lesson to be learned from trading forex and that is as follows.
Are You Cut Out To Be A Forex Trader?
By: James Woolley | 16/11/2007 | Currency Trading
Trading forex can be one of the most profitable professions, even if you're just trading your own account, providing you're successful. However, if you are trading on your computer at home it can be a very lonely profession.
3 Shortcuts To Becoming A Top Forex Trader
By: James Woolley | 14/07/2008 | Currency Trading
Forex trading has become big business these days with many people being lured to this profession by the potential riches you can make if successful. Many people who have become successful forex traders have usually gone through a steep learning curve over several years, but there are ways in which you can learn how to become a profitable trader a lot quicker.
Forex Education – if you Can’t Answer This Question Correctly you Will Lose!
By: Monica Hendrix | 13/09/2007 | Currency Trading
If you can’t answer the question I am going to pose in this article you will probably lose all your money when you trade. The question though is one that very few novice traders consider or think about so here it is:
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Financial crunch
By: karla | 15-07-2008
My husband and I own a home, I have very good credit. But we just lost our jobs and going through a crunch time, and we are both actively seeking employment. is it a good idea to ask my mortage lender "Wells Fargo" for support. and what are my options. I am trying to avoid falling into a financial trap.
AOL Password change
By: Jeanine | 15-07-2008
I cannot change my aol password. I don't remember my security question. The account has been around for years and I don't remember my daytime work number as I changed many jobs. I do have my current user and password.....HELP it doesn't give me any other options.
How can i get a list of employees earning $100.000 ...
By: carlo | 15-07-2008
how can i get a list of employees earning $100.000 or mre a year and work for American Red Cross
Family
By: Kathys Toy | 15-07-2008
we are looking for a member of our family,they are Greg and Sherry Weir
we would love to here from them. kathy Mike ,Larry Uncle Bob there are a lot of us no one where your Dad is Bill Joe Weir or your mom Marline.
Would love to here from earther of you or hopefulley both.
please call or email Joykall@aol.com
Am i gonna lose money on these mutual funds?
By: jennifer | 14-07-2008
my bank advised me to talk to their mutual funds advisor cuz i had 20k sitting in my account. so this past june i went and put 15k in td mutual funds (cdn equity,cdn bond, global select, int'l select, us large cap value fund, dividend growth) on the advisors advise and im already down to 13,995 and this is in just one month!! im 22 years old and cant lose too much money... im going crazy!am i gonna lose everything? sld i just ignore it or should i pull out before its too late?? help!
FED,SEC team July 8 2008
By: Pam | 14-07-2008
Find article about the merger of the SEC & FED to prevent financial risks
Q&A Powered by:
Latest Currency Trading Articles
Day Trading and the Mind
By: Terry Leslie | 26/07/2008
What impact your mind frame has on your day trading activities will in part be determined by how emotionally tuned you are. In some cases, if you happen to blow with your emotions, your day will be heavily affected by other things in your life, frustration, or a few bad trades.
Foreign Currency Investment Strategies
By: Tyler Ziggler | 25/07/2008
I wanted to take the time to talk to you about foreign currency investment strategies. There is a huge potential in this market to make some good money if you're willing to learn.
How Do Foreign Exchange Traders Make Money Online?
By: Charles Nash | 24/07/2008
I'm going to answer the question on how do foreign exchange traders make money online. Well, it's actually quite a simple process.
Easy Foreign Exchange Trading Tutorial
By: Tyler Ziggler | 24/07/2008
I wanted to take the time and give you an easy foreign exchange trading tutorial. This is one of the best markets in the world for profit. I think it can be demonstrated by the fact that three trillion dollars a day move around.
Currency Trading Education Tips
By: Tyler Ziggler | 24/07/2008
I wanted to take the time to share with you some of my currency trading education tips. This will help you learn the important parts of this business a lot better. Knowing the basics just isn't good enough. It's often the little things that make up the trader and make them a good trader. Too many people end up losing a fortune of money because they're just not prepared for the little things. I've been trading a long time now and I learned a lot about what it takes to be successful at this. I'm g
Trade Currency Online Smartly
By: Tyler Ziggler | 24/07/2008
I wanted to show you how to trade currency online smartly. This is a tough business and I know most people I hear from have been sold on this idea of quick riches and a 24hr trading period. If only it was that simple. This is a tough business on a global market place. You're going to be competing along side other individuals and huge banks. You have to know what you're doing or you'll lose all your money. You can't wing it. You can't know the basics and make it some profits. This is a business o
Easy Currency Trading Strategies
By: Tyler Ziggler | 24/07/2008
I'm going to share with you some easy currency trading strategies that I have been using to help myself make some profit. This market can be very rewarding, but I've seen a lot of ambitious people start out and lose a lot of money. Of course these people don't trade today and the reason is simple; they really didn't have a good knowledge base starting out. They just threw their money into the market and hoped more would come out. That's just wishful thinking. It requires sound strategies and beh
Currency Market Trading
By: Tyler Ziggler | 24/07/2008
Currency market trading is quite an old business for people to participate in, but has become quite popular in recent years due to the internet. This market, only a decade ago, was dominated by large banks and firms. Today, individuals from the comfort of their own home can participate and make good profits in this market with very little to start up with. This isn't a place to get rich quick. I've seen plenty of people lose a fortune worth of money because they assumed it would be easy. I'm goi
More from James Woolley
Trading Forex Breakouts - 3 Simple Strategies You Can Use
By: James Woolley | 18/07/2008 | Currency Trading
Many traders spend a lot of time looking for potential breakout situations when trading the forex markets. This is because when these breakouts occur, they very often yield a lot of points. So bearing that in mind, in this article I will discuss three simple trading strategies designed to catch these breakouts.
3 Shortcuts To Becoming A Top Forex Trader
By: James Woolley | 14/07/2008 | Currency Trading
Forex trading has become big business these days with many people being lured to this profession by the potential riches you can make if successful. Many people who have become successful forex traders have usually gone through a steep learning curve over several years, but there are ways in which you can learn how to become a profitable trader a lot quicker.
Short-Term Trading - Forex v Shares
By: James Woolley | 03/07/2008 | Currency Trading
The financial markets are extremely volatile at the moment, and as a result many traders are focusing on short-term trading as opposed to longer term investing. However is forex trading or share trading more profitable when trading on an intraday basis?
What Are The Treatment Options For Eczema?
By: James Woolley | 25/06/2008 | Diseases and Conditions
Eczema is a skin condition formed when the upper layer of the skin becomes inflamed. This results in dry, itchy skin that appears red and unsightly. The skin can also start flaking and blistering and in some cases can result in bleeding and scarring. The good news is that it can be effectively treated, even though there is no outright cure.
Does The Perfect Forex Trading System Actually Exist?
By: James Woolley | 24/06/2008 | Currency Trading
It's a well-known fact that many forex traders spend much of their lives seeking out the perfect forex trading system. With so much money to be made, particularly if you make full use of leverage, it's hardly surprising, but does this perfect system actually exist?
IBS Treatment - What Are The Options?
By: James Woolley | 18/06/2008 | Diseases and Conditions
IBS, or irritable bowel syndrome to give it it's full name, is a condition affecting the bowel and intestines that is said to affect around 1 in 5 people at some point in their life. It can be an extremely uncomfortable and embarrassing condition but although it cannot be cured completely, there are ways you can treat the disease.
How Has The Internet Opened Up The Forex Industry?
By: James Woolley | 17/06/2008 | Currency Trading
Traditionally forex trading was always the preserve of the rich and wealthy, and was generally carried out by large financial institutions, either for themselves or for wealthy clients. That's all changed, however, since the internet was invented.
Healing Wounds With Aloe Vera
By: James Woolley | 14/06/2008 | Health
Most of us have suffered from cuts and wounds on our skin at some point in our lives, and for the most part they can take quite a long time to completely heal up. However one way of reducing the healing time is to use aloe vera.
Finance 
