Trading on Forex at night - is it really unprofitable?

Many traders wrongly believe that trading in the Forex market is not profitable at night. But in fact, it is this period that is most favourable to trade. In this article, we 'll figure out why it is.

Trade features in Forex market at night

At night the Forex market is very calm. Therefore, the trading system that is used in night trading is flat. What does it mean? And the fact that rarely price goes beyond a certain range, making the market more predictable. This movement is lateral in the long run. And in the short term there is an active movement in one direction or the other. Therefore there is a high probability to "win back" after loss. After all, the schedule is likely to go in the direction you want. The market is becoming very predictable due to the calm trading regime.

Why does that happen? The reason is simple enough - global currency exchanges at night simply do not work. And these are quite large players in the Forex market, which makes their influence on quotations quite significant.

In what range can the price fluctuate? But in general, it 's a rather narrow range. Depending on the current economic situation, the instrument used, and a number of other factors, the cost can range from twenty to forty points.

Here are some features of trading on Forex at night:

Trading on Forex at night is always a lull. It is necessary to be oriented with the beginning of this period at midnight Moscow time. That 's when lateral movement begins. This is due to the fact that many traders are already sleeping at this time, and part of the market is simply closed. That is why the number of active traders in a given period is significantly decreasing, making the market more predictable.

Courses move at the most speed from three to three thirty nights. What 's the reason for that? Above all, because Japan is the biggest player in the Forex market, making any predictions impossible. Therefore, experts advise to stop trading at this time.

Trading on Forex at night is just a scalper dream. In fact, you could guess it when you read about high volatility in the short term.

Given that volatility is always limited to tight and rather narrow frameworks, it becomes incredibly easy to analyze the market. And where forecasts are possible, there is higher confidence. Therefore, the impact of emotional factors on trading is not so significant. So you can earn enough decent capital.

So we figured out the benefits of trading on Forex at night. But the shortcomings also need to be taken into account. Above all, it is the danger of the scalping method itself. The fact that it is the safest at night does not yet indicate its harmless at all.

Dwain Ross

Financial analyst, writer, news reporter and a certified professional journalist. He was born in Liverpool in 1980. Has a great experience of managing multi-million dollar budgets while giving examination and record uphold inside item advancement divisions. Experience making quarterly gatherings dependent on patterns and anticipated costs.

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