Setting A Schedule and a Written Forex Schedule Example

Forex is a market that is global in nature. The global nature of the market means that it is open around the clock throughout the week and there is a wide range of currencies to choose from. Traders therefore have a lot of flexibility when it comes to choosing when to trade the market. However, not all times are suitable for placing forex trade transactions.

traders should set up a schedule based on the most active market hours which are the best hours to help maximize profits.

USA, London sessions are the most active market times, there is also the Asia Session which is the third market session. These three major market sessions make up the largest volumes of trade transactions from across the world on a daily basis, although Asia market session is one of these 3 market sessions it is best not to trade during this particular market session.

There are also market session overlaps in between the three forex sessions, where two market sessions are open at the same time, these market session overlaps are the most active market periods. These market session overlaps provide a great opportunity to trade in multiple markets at once and maximize your potential profits.

The best market session overlap is the one that occurs between the US and London markets. This is when the currency trade transactions are the most active and more opportunities present themselves.

Asian market session is the least active of the three major market sessions. Many currency pairs will move slowly or consolidate at a single point throughout the Asia market session. This is not a good time to be in the market - this is the best time to take a break from trading forex. Even Asian investors avoid transacting currencies at this time and wait until night time to trade the market when the Europe and US markets are open.

Because the trading day lasts all day and night and it is not possible to stay up all night long, investors and traders should set up a workable forex schedule. By gaining an understanding of these market hours, a trader can set appropriate hours for trading so as to increase chances of maximizing profits.

When setting up a forex schedule, it should accomplish the following goals:

1. Familiarize yourself with the various market sessions. These are: New York market session, the London market session, the Tokyo market session.

London Market Session 3a.m. To 12p.m. EST ( 8:00 GMT 1700 GMT.)

New York Market Session 8a.m. To 5p.m. EST (1300 GMT 2200 GMT.)

Tokyo Market Session 7p.m. To 4a.m. EST (00:00 GMT-9:00 GMT.)

2. Trade during this time when currency pairs are most active.

3. Plan a workable forex schedule. So as to keep a balance between your time to get adequate rest. The best time is between 3a.m. To 5p.m. EST

When the USA and UK market sessions are both open currencies will generally trend up or down and move a good number of pips in one direction. As a technical analyst, this is the time when the indicators will provide good and profitable signals that catch the market trend.

When the prices are trending and moving fast in a particular trend direction, traders will find it much easier to make money when trading a market that is moving upwards or moving downwards in a trend as compared to when there is no market trend direction and the market is moving in a range - sideways market movement.

On the other hand, during the other times for example the Asian market session, the prices will be in a range movement - sideways movement and traders using indicators will have a hard time making profits as the indicators will generally tend to be more prone to whipsaws (fake out signals). A trader will find it difficult to make money in this range bound price action sideways market movements.

It is 10 times easier to make money when the market is moving up or moving down than it is to make money when market is ranging.

During the best market times to open orders, i.e. 800 GMT and 1800 GMT the currency prices will trend in one direction, during other times like Asia Session, the currency prices movement are likely to be Range Bound.

Some currencies are more active during a particular market session than others and understanding this will allow you to make the most out of the market.

• London market session 08:00 GMT - 16:00 GMT most active currencies: EUR, GBP and USD.
• US market session 13:00 GMT - 22:00 GMT most active currencies: USD, EUR, GBP, AUD and JPY.
• Asian market session is a relatively slow for all currency pairs and not suitable at all for most traders. The most active currency is only the JPY.

Basically your forex plan should target 800 GMT and 1800 GMT as the time that you trade currencies.

Example of a Forex Schedule on a Forex Plan

The example below shows how to specify your forex trading routine and time of day to watch the market and open trades. This will form the basis of your forex schedule. The time frame that you use will also be specified and mostly it will depend on what type of trader you are. The time set for this example is during the day when the UK and USA market sessions are open as shown on example below.

Written Forex Schedule Example - How to Write a Forex Schedule Explained - Forex Plan Sections