The internet has ensured that people can participate in forex trading at any time they want since the markets are open 24 hours a day. This is very convenient for most traders, especially those who are committed to day jobs and other important activities. It also gives you more time to access the markets thus increasing your chances of making profits. Since it is impossible to participate in the markets throughout, you will have to know the best times to trade so that you maximize on your profits.
Traders make the most money when the markets are volatile and moving. This is not always the case as sometimes the markets are relatively calm and quiet. You therefore need to identify the most active trading times so that you time your entries and exits accordingly. First, you need to know that forex trading globally involves three distinct trading sessions. It starts with the Asian markets, moves into the European session based in London before entering the New York session that covers the whole of North America.
New Zealand and Australia fall under the Asian trading session and they are the first and second markets to open every new trading day. The AUD/GBP is the most traded currency pair in the Australian market, and Asian currencies like Japanese Yen and AUD tend to dominate trading in the Asian session. If you are going to be trading mostly in the AUD, this session represents a good time for trading. However, the Asian trading session is considered less volatile in comparison to London or New York so you may have to enter these other markets if you are looking for real action.
The AUD is popular all over the world and is the sixth most traded currency on the globe. This means that you can actively trade the AUD in any market and make good profits out of it. The London trading session overlaps with the Asian trading session by one hour while the New York session is opened four hours before the London session is closed. The periods during which the sessions overlap are the best to trade in since volatility and volumes reach peak levels.
Keeping up with the markets on a daily basis is not easy especially if you are putting in long trading hours. Furthermore the markets can sometimes change abruptly even when they are expected to be relatively quiet. There are various forex trading tools and applications that can help you as a trader to ensure that you maximize on your profits. They make it possible to know how the markets are performing even when you are not actively trading.
There are different forex trading robots that traders use to trade on their behalf when they cannot participate in the markets by themselves. These forex robots can either be manual or automatic. The manual ones are installed on your personal computer, and they will track the markets and record all important activity. They then make trading recommendations but it is still up to you to initiate trading or not.
The automatic forex trading robots are programmed to trade on their own when the conditions are right. Once you have programmed the desired settings, like when to enter and exit trades, the robot will perform the trading even when you are away. This leaves you with plenty of free time to attend to other issues. Forex trading also requires a lot of support information in the form of forex charts and signals. You have to ensure you get these from reliable sources as you will need them to help you make the right trading decisions.