You state that you intend to trade in the markets? That is a great idea! Especially in Forex, it can certainly help to know as much as you can about markets you will trade as trading blind can have its complications; there are numerous Markets in the world. There are a variety of ways that you may approach trading(Day trading, Scalping, trend trading), I'll look at the main markets as there are several effective times that you should use which will help you to reach your objective ie. Profitability. So take a moment to think about what area are you are in First.
Before you, many people made up their minds to trade the markets. By taking a look at the hours they tried, and their failures and successes, there are several useful lessons that can be learned. To make it easier for you to succeed, listed below are 3 busiest markets and their intersecting trade times. Trading when these markets are at their peaks will have yielded excellent results especially for day traders. But don't just trust me on this one. All the successful traders will agree here. For the purpose of this article all the times are shown in GMT (for EST, just remove 5 hours).
Five Times to know are:
1. Asian Market (Tokyo) 00:00-09:00 GMT Starting with Tokyo, Hong Kong and then Singapore, This market can really get volatile. For intraday traders this can be a heaven in the right moment with a potential earnings of 90 pips/ticks a day. If you will be trading this market, one thing that you will need to take into account is the overlapping market hours which I will cover shortly.
2. U.S. Market (New York) 13:00-22:00 GMT
New York being second largest Forex market in the world and happens to produce even 120 pip return daily. Guarding the back-doors to the Forex world, no wonder the busiest hours for this market happen during the first 4 hours.
3. European Session (London) 07:00 - 17:00 GMT
London is the biggest Forex hub with over 30% of all the trading takes place here and 6 out of the 12 major currency pairs flows through here. This alone can be a sure winner, as long as you know what you are doing.
4. U.S. Europe Overlap 13:00 - 17:00
This is where it gets really exciting. The two of the biggest markets overlap here and over 70% of these market movements happens during this time. If you cannot spend all day on your computer but want big market moves and big ranges then this is the time to trade.
5. European Asian Overlap 07:00 - 09:00
This Overlap isn’t as strong as the US-EU but can certainly be a great start for all you early risers in Europe. Even with the lower volatility, Remember about taking precautions when trading.
There are no guarantees, of course. But generally speaking, if you stick with the tactics above and follow them in their spirit and by their letter, your probability of achieving a good return just by knowing the opening and overlap hours will definitely be significantly higher.