Setting a Gold Trading Schedule and a Written Example
Gold trading market is a market that is global in nature. The global nature of the Gold metal market means that it is opens around the clock throughout the week. Traders therefore have a lot of flexibility when it comes to choosing when to trade XAUUSD metal online. However, not all times are suitable for placing trades.
Investors should set up a trading schedule based on the most active Gold trading hours which are the best market hours to help maximize profits.
USA, London and Asian market sessions are the most active times suitable for trading Gold. These three market sessions make up the largest volumes of transactions from across the world on a daily basis, although Asia session is one of these 3 market sessions it is best not to trade during this particular session.
There are also market overlaps in the between the three market sessions, where two market sessions are open at the same time, these market overlaps are the most active periods. These overlaps provide a great opportunity to trade in multiple markets at once and maximize your potential profits.
The best overlap is the one that occurs between the US and London market sessions. This is when the financial transactions are the most active and more trading opportunities present themselves.
Asian session is the least active of the three major market sessions. Gold prices move slowly or consolidate at a single point throughout the Asian session. This is not a good time to be in the market - this is the best time to take a break. Even Asian investors avoid trading at this time and wait until night time to trade 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 should set up a workable Gold trading schedule. By gaining an understanding of these market hours, a trader can set appropriate hours to increase chances of maximizing their trading profits.
When setting up a Gold trading schedule, it should accomplish the following goals:
1. Familiarize yourself with the various market sessions.
These are: New York session, the London session, and the Tokyo session.
London 3 a.m. to 12 p.m. EST (8:00 GMT 1700 GMT.)
New York 8 a.m. to 5 p.m. EST (1300 GMT 2200 GMT.)
Tokyo 7 p.m. to 4 a.m. EST (00:00 GMT-9:00 GMT.)
2.Trade during this time when Gold prices are most active.
3.Plan a workable trading schedule. So as to keep a balance between your times to get adequate rest. The best time to trade is between 3a.m. to 5p.m. EST
When the USA and UK market sessions are both open prices of Gold will generally trend up or down and move a good number of pips in one direction. As a technical analysis trader, this time the indicators will provide good and profitable trading signals that catch the trend.
When the Gold prices are trending and moving fast traders will find it much easier to make money.
On the other hand, during the other times for example the Asian market session, the prices will be in a range bound sideways movement and traders using technical indicators will have a hard time making profits as the indicators will generally tend to be more prone to whipsaws. One will find it difficult to make money in this range bound sideways price action 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 the market is moving sideways.
During the best times to open XAUUSD trading orders, i.e. 800 GMT and 1800 GMT the XAUUSD prices will trend in one direction, during other times like Asian Session, the Gold prices likely to be range bound and move sideways.
London session 08:00 GMT -17:00 GMT.
USA session 13:00 GMT - 22:00 GMT.
Asian session is a relatively slow for all Gold price movements and not suitable at all for trading Gold
Basically your plan should target 8:00 GMT and 18:00 GMT as the time that you trade Gold.