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Forex Morning Trade

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  • 02 January 2011 8:34 AM GMT
By: Charley Warady

The Forex market is always exciting because it never shuts down. Do not worry about the Forex morning trade. You might miss the one trade you want to make and you'll never forgive yourself. It is best to simply stay awake all the time. You may have to forgo the bathroom breaks, and certainly eating is going to be out of the question. Coffee may be a problem because of the forbidden bathroom breaks, so you'll have to stay awake on your own self-will.

Into the second day of this schedule, after you've awoken from having passed out from sheer exhaustion and boredom, it is time to re-think the strategy. The concept of a Forex morning trade might be appealing. You may look at the date on your computer and realize that you've slept for the same amount of time you tried to stay awake. That's okay. The good news is... the Forex market is still there. And more importantly, you've learned a lesson. You can't be in the market all the time. There are times to trade, and there are times to walk away. That's why the Forex morning trade is important.

Look for liquidity

The easiest way to determine when the good time to trade Forex is to do what the professionals do. They trade when the Forex volatility and liquidity is greatest. It makes sense. Getting into a Forex trade at the market price is rarely a problem. Getting out of a trade at the point you want might be. It all depends on liquidity. The more people available to trade, the more likely it is to be able to do what you want, or what you need. Therefore, the opening of any market is always its most liquid. The Forex morning trade is a must.

The optimal time to trade Forex is between the hours of 8 AM to 12 PM EST. That's it. Four hours. This is the time in which the European market is closing and the United States market is opening. It's this Forex morning trade time that kicks things off. The overlap of this time frame usually makes for the best atmosphere in which to trade. For obvious reasons, this is usually a great time to trade the most popular EUR/USD. And this is always a time that most of the professionals are getting involved, so if there is going to be movement in the Forex markets, this would be the time it is happening.

If you're living in the States and suffer from insomnia, you'll be happy to find the European session runs from 2 AM to 12 PM EST. That should give you something to do, if you feel like having your Forex morning trade at 2 AM.

When not to trade

There are times to back away. The least volatile and liquid time is from 2 AM to 4 AM EST. This is the time of the European/Asian overlap. If you only need a nap to survive, take one during this time frame guilt-free. You're not going to miss much.

Balance is one of the most important keys to long term Forex survival. If you're burned out; sooner or later... so will be your trading. Trade the most when there is the most liquidity, and the Forex morning trade will always prove useful.

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