How to Know When to Trade Forex


In this text; We have shared with you all the answers to the question of when to trade forex market detail. You can learn the correct hours and multiply your profit.

How to Know When to Trade Forex

Forex trading is very attractive for people who want to make money and make their investment business even more advantageous. In forex, which is the largest market in the world, many advantages are utilized due to the structure of the market, and savings are utilized in better opportunities compared to other methods. If you do not know much about forex, these may not seem realistic to you. But when you do some research on the market, you will understand the logic of trading and see what you need to do to be successful.

As you know, timing is very important in investment transactions. You earn money as a result of creating the right position at the right time. This logic also applies in the Forex market. In other words, the advantages you hear about forex work for you as long as you improve yourself. For this reason, we are talking about the fact that you need to get forex training first and that you should start trading in this way. You can learn how to create the right positions by taking advantage of free forex training. At the same time, you should not start trading before you see that you have this ability.

Now, let’s take a look at the information about when to trade forex and how people who want to be successful should follow:

What is Forex Trading?

Forex trading, you need to start from the very basics. If you understand the basics well, you will easily understand where, when, and how to trade. Forex transactions are based on trading in intangible ways with investment instruments in a wide portfolio of investment instruments. You make a profit by buying when the price of the investment vehicle is low and selling when it is high. This logic also applies to the stock market. In addition, in the forex market, you can profit from the investment instrument whose price is falling. Thanks to this process, which is defined as short selling, you evaluate every price movement in the forex market.

For the right timing, you need to have a good grasp of the forex logic I mentioned above. In other words, you cannot make a correct purchase and sale without knowing the downward and upward movement of prices. Therefore, you cannot create a position at the right time. What you need to do is to know when the prices of investment instruments fall and when they rise. To know this, you should know the factors that affect the prices of investment instruments.

E.g; Unless you know what causes a stock’s price to drop, you don’t know when the price goes down. As you can see from these, you should consider the forex market as a whole. You should see that the events are always related to each other and you should improve yourself to make money by making the right transactions.

When you browse Forex trading, you will see a market where short-term fluctuations can be evaluated. The formation of a high transaction volume of 10 trillion dollars per day allows short-term transactions to be made. To be more specific; If you can accurately capture the fluctuations in the prices of investment instruments, you can also earn daily income. So again, the timing is right. Here, demo accounts will be the biggest help for you in this regard. You buy and sell with virtual money in real market conditions and you see in which situations you are profitable and in which situations you are harmful. Thus, without losing your own money, you gain a good experience.

What to Do to Create a Position in Forex at the Right Time?

When you create and close your investment transactions at the right time, you will be profitable. To learn when to trade Forex, you must first have information about the forex market. You should know every little detail, from the structure of the market to the characteristics of investment instruments. In this regard, the biggest helper will be forex books. You can get detailed information from A to Z thanks to the printed books or e-books written by the expert staff of the intermediary institutions. You can participate in campaigns organized by intermediary institutions to have printed books free of charge. You can download e-books directly to your computer for free.

After learning the operating logic of the market, you need to know which factors are affected by investment instruments. You should follow the factors that cause the prices to fall or increase. You should know which data affects which direction. E.g; You should be able to interpret how the non-farm employment data announced in the USA causes fluctuations in investment instruments such as gold, oil, and stocks, especially the dollar. Only in this way can you accurately understand when the price of an investment instrument will rise or fall.

It is very important for you to develop your market monitoring ability to predict when the investment instrument will fluctuate. In particular, you should strictly follow the release times of economic data. You should also know at what level these data came in the previous period and their future expectations. In this way, you can interpret the data correctly and understand what effects it will have on the investment instrument. When you learn to follow the market, you take a good step towards the right timing.

Another important issue you need to know for the right timing in Forex is technical analysis. Technical analysis, which allows reading the price charts of investment instruments, allows you to create a position at the right time. At first, technical analysis may seem complicated to you; but how they are done is explained in detail in demo accounts and training videos. By taking advantage of these, you can also have the ability to do technical analysis in a short time. Then, you can create a position at the right time by interpreting the information you get from the markets and what you get from technical analysis.

When to Trade Forex? What are the Risky Trading Hours in Forex?

In forex, which is a global market, investments can be made 24 hours a day, 5 days a week, excluding weekends. It is possible to trade forex wherever you have an internet connection. This is a great convenient for investors. Because it will be impossible for working people to stop working and do analysis and market follow-up. However, during lunch break or on vacation, you can log in to your forex account from a computer or smartphone.

In certain hour intervals, more fluctuations occur in prices. There may be different reasons for this. The most basic reason is due to the trading centers where the forex market is managed. In other words, the forex market is managed from the trading centers of countries with different geographical locations. Naturally, these trade centers have certain opening and closing hours. Even though the Forex market is always open in a loop, the trading centers are open at certain hours.

When the markets of countries such as Europe and America are open, higher volatility is observed. At the same time, an extra price fluctuation is observed when the working hours of these two markets overlap. Inexperienced traders should pay special attention to these overlap hours. Because local investors of both major markets start to trade and unrealistic movements are observed. The novice investor, who is deceived by these movements, can make a mistake. Therefore, the risky hours to be aware of are the times when the two markets overlap. Experienced investors, on the other hand, can make instant gains during this time. Therefore, you can take advantage of this opportunity by improving yourself on demo accounts.

SEE ALSO: What is the Bid Price-Ask Price and Bid-Ask Spread?

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Marcus Arat

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