How To Become Wealthy

Many traders find that the forex trading time zones can be a bit intimidating . Like many others , when I started in this global, cash, 24 hour market, the time zones issue never made a whole lot of sense to me . 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.

Consider where you live first, or the place where you do your forex day trading system trading from. This alone is the biggest factor affecting the way you look at this 24-hour market. For the purposes of our example here let’s say that California is where you life on the West Coast of the United States in the Pacific Standard Time (PST) zone which is three hours behind East Coast time in New York.

Now that we know that California is where we’ll be doing the trading , and we know it’s three hours behind East Coast time, the planning can begin for the forex day trading system trading day. In this market that goes 24 hours and never sleeps (but gets very quiet on weekends and major international holidays such as New Years ) the day is rest and stops when the financial centers in New York close at 5pm or close to that in Eastern Standard Time and then banking centers like Hong Kong etc in the Far East open and start a new day at roughly the same time. Keeping this in mind it’s best to have your trading charts set up so that the candle or daily bar you use will close every day at about 5pm Eastern Standard Time.

Now that we have figured out we’re trading from the United States West Coast which is 3 hours behind NY’s Eastern Time and we’re aware of when the 24-hour market will stop and rest for another 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 , like our example, and you like staying up late then the London session is what you may want to prepare to tradefrom about 1am PST (4am EST) to 4am PST (7am EST) . Maybe you want to sleep through the London session because you like sleeping but getting up early is no problem , at around 4am Pacific Standard Time so you get a look at the end of the London session and prepare for the start of the New York session which will really get going around 5:30am PST (8:30am EST) . Perhaps getting up early isn’t your thing and the middle of the day is when you prefer to trade; no problem . Just wait for 2pm PST or 5pm EST when the new day in Tokyo starts 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 . Keep in mind , preparation and planning are the most important yet overlooked factors of success in all businesses, including this one.  So this is how you plan out your forex day trading system day.