You may have noticed that the value of currencies goes up and down every day. Investing in the foreign exchange market can be potentially profitable based on the movement of these currencies. As technologies have improved, the Forex market has become more accessible resulting in an unprecedented growth in live online trading. Day trading is not for everyone. Yet anyone can learn how to day trade with the right education and coaching. One of the websites where you can learn more about day trading Forex live is right here.
When should I trade?
The best time to trade depends on where you live. Various markets open and close throughout the day (or night) which markets you choose to follow should be determined through your own research. One thing stands true no matter where you live: When there is an overlap in trading times between open markets is when higher price ranges occur – resulting in greater opportunities.
Want to know the best days of the week to trade? Then visit this page.
Day trading Forex live depends on which markets are open for business. You will find that not all markets are equally as opportunistic for you to trade in – meaning that, depending on where you live, you might have to trade at unconventional hours. Choose your market, learn it well and stick to no more than 2 markets to trade in at any time. This will keep you focused and will aid in growth of experience faster.
The United Kingdom dominates the currency markets worldwide, and London is its main component. London, known as the trading capital of the world. The city also has a big impact on currency fluctuations because the Bank of England, which sets interest rates and controls the monetary policy of the GBP, is based in London. Forex trends also often originate in London, which is a great thing for technical traders to keep in mind.
New York is the second largest forex platform in the world and is watched heavily by foreign investors because the U.S. dollar is involved in 90% of all trades. Movements in the New York Stock Exchange (NYSE) can have an immediate and powerful effect on the dollar. When companies merge and acquisitions are finalized, the dollar can gain or lose value instantly.
Tokyo takes in the largest bulk of Asian trading, just ahead of Hong Kong and Singapore. It was the first Asian trading center to open. The best currency pairs for day trading Forex live to aim for are USD/JPY, GBP/CHF and GBP/JPY.
Sydney is where the trading day officially begins, and while it is the smallest of the mega-markets, it sees a lot of initial action when the markets reopen on Sunday afternoon, because individual traders and financial institutions try to stabilize after all the action that may have happened since Friday afternoon.
Did you hear the news?
You don’t need to know an economy inside out, but it pays to follow what is moving the markets and jump on the back of big players moving and any news announcements. After news is released, price will move in a more solid and more profound way. The Forex market is driven by high impact news events, and by understanding how to take advantage of these events, you can increase your profitability and avoid costly mistakes. Many novice day traders come to a rude awakening realizing the importance of news events only after seeing a perfectly profitable trade turn into a loss in matter of seconds, while experienced Forex traders anticipate the move and add to their daily profits in a consistent manner, almost like clockwork.
Following a Forex Economic Calendar will keep you informed with which markets are live. Day trading Forex live is like no other trading investment. Its fast paced, with high risk and higher rewards if you stick with a good trading plan.