Although, the Forex trading markets are open 24 hours every day in Nigeria, there are a few hours that are seen as the best time to trade Forex if you want be among the top Forex brokers. It is extremely very important for a trader to identify the days and hours so as to guarantee success.
There are three main sessions of Forex currency trading around the world of trading currency. The Forex trading hours are different, for instance, the London market opens from 3:00 AM to 11 AM, the New York marketplace is open between 7:00 AM to 4 PM, and the Japan/Australia market is open from 7:00 PM to a few AM.
As you can see, everything about Forex trading in these countries are obvious, the foreign currency market is active throughout the day in Nigeria. But you should understand that the fact that the “price movements” and trading volume aren’t uniform throughout all these sessions. Sometimes, it’s a good idea for traders to leap into the market and at times, it’s best to just keep away from it.
The central idea is to get involved in the trade at the time the Forex markets are extremely busy. Remember, all of the currencies react in different ways during every session.
For instance, during the New York market, the British Pound, US Dollar, Australian Dollar, Euro, Canadian Dollar, Japanese Yen and New Zealand dollar are very active and, especially when the London companies are open, the Swiss Franc, Euro, British Pound and US Dollar will be the most active currencies. Keep this Forex technical analysis in mind when trading with the big guys out there or the Forex trading companies
The best time is always to trade in the first 3 to 5 hours of all the mentioned sessions, particularly if your fundamental analysis points on the new economic calendar are released. Therefore, it’s recommended for you to trade-in between 3 AM and 11 AM.
The reason is that the New York and London market overlap during these hours, which creates lots of trading opportunities that, are boosted with regular price movements. When you have an effective trading plan set up with a money management system, it is not difficult to make millions of Naira and maybe thousands of dollars in a foreign currency in just a few minutes.
The pairs of currencies, which can essentially be the most active during the overlap, are GBP/USD, USD/CHF, USD/JPY and EUR/USD. The three hours in between 8 AM and 11 AM are particularly profitable as many economic releases are produced together, which can help you in making substantial profits.
In addition, you need to ensure you don’t trade on Sundays, as nothing significant really happens in currency rates. It’s also advisable to not trade Late on Fridays as the companies are extremely unpredictable as a result of the weekend.
Holidays should be avoided too. The best time to trade Forex in Nigeria is around the hours stated earlier on Tuesdays and Wednesdays as the peak trades occur between these two days.
In conclusion, Forex trading in Nigeria is the best way to earn extra income, however, there is more to learn when it comes to Forex trading tips than simply knowing the best time to trade Forex in Nigeria.
Do you have any questions about foreign exchange trading? Leave your comment below.