Auto Forex Trading

Understanding Auto Forex Trading Time Zones

Many traders find that the forex trading time zones can be a bit intimindating . Like most traders , when I first got involved in this cash 24 hour global market , I couldn’t make a lot of sense from the time zone issue. However, that changed over time and within the article I’ll let you in on a few basic insights on how I handle this market and hopefully this will give you some help when getting prepared for another big trading day.

The first thing you need to consider is where you live , or the place where you do your auto forex trading trading from. This is the most important factor that affects how this 24 our market is looked at . For an example let’s suppose you reside in California which is on Pacific Standard Time and on the United States West Coast which is three hours behind East Coast time in New York.

Now that we’ve determined that we are going to do our trading from California , which is 3 hours behind New York , the planning can begin for the auto forex trading trading day. In this never sleeping 24-hour market ( although it does quiet on international holidays and weekends ) the day is rest and stops when the financial centers in New York close at or around 5pm EST and the Far East banking centers of Tokyo, Hong Kong, etc. open and start a new day at roughly the same time. Taking this into consideration it’s best to have your trading charts set up so that the candle or daily bar that you are using closes at 5pm EST every day .

Now that we have figured out we’re trading from the United States West Coast which happens to be three hours behind EST in New York and we know when the market resets and stops to start a new day . The next thing to consider is when you will get ready and plan for the next day . If you happen to be in California , as in this example , and you happen to be a night owl then perhaps you’d like to get ready to trade the London session which is from 1am-4am PST or 4am- 7am PST. Or, maybe you enjoy your sleep and want to doze through the London session but getting up early is no problem , around 4am PST (7am EST) so you can see what the end of the London session looks like and get prepared for the session in New York which gets a good start at 8:30am EST or 5:30am PST. Or, finally, perhaps you hate waking up early and the middle of the day is when you prefer to trade; no problem . Just wait until around 2pm PST (5pm EST) when the day begins in Tokyo and you can do your trading during this session .

Now you clearly have knowledge of the major forex trading time zones and your days can be planned accordingly. And remember , planning and being prepared are the most important factors, yet often overlooked of success in any business , including this one .  This is the best way to organize your auto forex trading day.