Reading this, you already know what Forex trading is, Forex trading has to do with the buying and selling of foreign currencies in the foreign exchange market with the aim of making profit, it is not new in Nigeria. You hear a lot of people talking about Forex trading everyday and how much money they keep making from it. Anyone can make money from Forex trading, you just need to be well enlightened about the market. Forex trading does not have a particular trading time, the Forex market can be accessed 24 hours a day, 5 days a week. But, not every time is the right time to trade, there are ideal hours and days to trade that can help you hit big. If you really want to make it in the Forex Market, then you really need to be aware of when is best for you to trade.
The first thing you need to know is the trading sessions, different countries and currencies have different trading sessions. Since the Forex market is available all day, it is good to be knowledgeable about these trading sessions so you know what to expect when you trade. This is because there is really no specific best time for Forex trading, the time one trader will be hitting huge profits, another might be encountering loss. The thing about the trading sessions is that trading in the first 3 hours is ideal, at that time, the market just opened and will be very busy with traders. Trading in late hours of a trading session may be ideal too but it has to do with the market condition.
Market conditions should be considered as well when trading, it is normally recommended to trade when the market is very active. There are times when a particular set of currencies seem to be the most active, at that time, it is more possible to make profits than loss because there are traders all around willing to buy and sell. You should know how the market is affected by keeping up to date with the currency news and happenings in foreign countries.
Days of the week like Tuesday, Wednesday and Thursday are very good times to trade as the market would have set a clear path or direction of the trend for the week. Trading on Fridays is not really a good idea as the market trend might have been exhausted, hence pull backs or retracement is highly probable of happening. Also public holidays like Easter Good Friday, Easter Monday, Christmas eve, Christmas, Boxing day, New year eve and New year are not good days of trading as well as liquidity is very thin. On days like this, it is unlikely for anything significant to happen in the forex market and likely for traders to withdraw from trading.
In addition there are specific months in the year that has proven not to be good months for trading. Months such as December and January from history has been proven not to be too good for trading. This is due to investors and large financial institutions rounding of for the year or not resuming yet for the year. Hence this months has low liquidity but possibly high volatility, so its best to stay out of the market this periods. An example is the flash crash which occurred in the market from the announcement of bad reports from Apple company in January 3, 2019. A lot of retail traders lost heavily this particular day because they failed to understand the best time to trade the Forex market!
Why following the tips and hints contained in this article, you should try to draw your own trading plan. That way, you get to create and stick to a plan that works for you. With it, you can make real money while trading Forex in Nigeria.