Tuesday, 20 July 2010

• Auto Forex Trading - A Look At The Time Zones

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    For an average trader, forex trading time zones can be intimidating and difficult . Like most traders , when I first got involved in this cash 24 hour global market , the time zones issue never made a whole lot of sense to me . Over time that would change and here I'm going to show you some of the basics as to how I handle the 24 hour market and hopefully that will help you the next time you're preparing for your next big day of trading .
    
    You first need to think about where you're living , or where you plan to do most of your auto forex trading trading from. This will be the single greatest factor affecting how you look at this 24 hour market . For example, let's say that you live in California which is on Pacific Standard Time and on the United States West Coast which happens to be three hours behind the time on the East Coast .
    
    Now that we've determined that we are going to do our trading from California , which is three hours behind the East Coast , we can start planning our auto forex trading trading day. In this 24 hour market that never sleeps ( while it quiets down on weekends and big international holidays) when the New York financial centers close the trading day stops and resets at about 5pm Eastern Standard Time and the banking centers in the Far East like Hong Kong and Tokyo open and start a new day at roughly the same time. Taking this into consideration it is best to set your trading charts up so that the daily bar or candle use use closes each day at 5pm EST .
    
    Now that we have figured out we're trading from the United States West Coast which is three hours behond New York's EST and we're aware of when the 24-hour market will stop and rest for another day. Next we have to decide when to prepare and plan for the next day . If California is where you live, as in our example here , and you like staying up late then you may want to start preparing to trade the London Session which is from 1am-4am PST or 4am- 7am PST. Maybe you want to sleep through the London session because you like sleeping but have no problem getting up early , at around 4am Pacific Standard Time so you can see what the end of the London session looks like and get ready for the beginning of the New York session which gets going about 5:30am Pacific Standard Time, or 8:30am Eastern Time . Maybe you don't like to get up early and so you'd prefer to be a middle of the day trader ; not a problem . Just wait for 2pm PST or 5pm EST when Tokyo gets started and this session is when you can do your trading.
    
    Now you've got a clear handle on what the major forex trading time zones are all about and you can accordingly plan your days . Just remember, preparation and planning are the most important yet overlooked factors of success in all businesses, including this one.  Making plans can be easy for your auto forex trading day.

    
    

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