Traders Union is an important portal for information about the Forex trading market. The portal has now shared some ideas about the best trading hours on the market when traders can expect to maximize their profit margins.
Conventionally, traders believe that high volatility periods are the best times to trade in the Forex market. But a more in-depth analysis will show that this is not always effective and can increase the risk significantly for amateur investors.
But now, Traders Union has come up with a better answer to the question of when to trade on Forex. Traders Union already has a strong reputation among Forex traders for conducting extensive research studies about different factors operating in the Forex market.
Traders Union also decided to conduct a survey to find the ideal timings for trading. The top 2000 performing traders who were a part of their community were studied. But there was also adequate diversity among the survey respondents in terms of gender, age, and trading portfolios.
Traders Union then collated the data from these respondents to create the statistics of which time of the day and the wee are most suitable for profitable trading.
Traders Union explains that the earlier concept of trading during high volatility periods is also closely connected to the question of liquidity. It claimed that according to research, maximum liquidity is available at points in the day when different markets converge with each other. For instance, the period between 23:00 to 7:00 GMT is when the Sydney and Tokyo markets converge. Similarly, the New York and London Markets converge between 13:00 to 17:00 GMT.
Traders Union believes that volatility is highest on Thursdays and Fridays because the markets will remain close for two days. Volatility can also be very high on Monday depending on the recent developments in finance and politics during the weekend. On the other hand, Tuesdays and Wednesdays are usually the most stable and lowest in volatility.
High volatility periods can be very profit-making, but there is also a larger risk. Thus, traders need to be careful about making their choices.
Consult Cryptonewz for more exciting updates about the Traders Union and other Forex brokers.