If you are just starting out, start slowly ideally you should chose a currency that is close to home. For example if you live in UK the chances are your news and economic data will relate to the UK (GBP) and the Euro Zone (EUR).
The largest volume traded pair is EUR/USD so you may pick a combination of EUR/USD, EUR/GBP or GBP/USD. Many professional investors do not trade any more than one or two pairs, ever. As your knowledge and experience grows you can diversify your portfolio with additional investments however, caution is advised not to “over trade”. By attempting to trade too diversely and too many products, could lead to overload of analysis and an inability to control portfolios.
When to trade
The Forex market is open 24 hours a day, but that doesn’t mean it’s always volatile the whole day.
You can make money investing when the market moves up, likewise you can also make money when the market moves down. Depending if you are Long or Short.
Daylight savings time DST. Eastern Daylight Time- EDT
Summer (approx. April – October)
|Time Zone||Eastern Daylight Time||Daylight savings time|
|Sydney Open Sydney Close||18:00-03:00||22:00-07:00|
|Tokyo Open Tokyo Close||19:00-04:00||23:00-08:00|
|London Open London Close||03:00-24:00 PM||07:00-16:00|
|New York Open New York Close||08:00-17:00||24:00-21:00|
Winter (approx. October – April)
Ti Time Zone me Zone
|Eastern Daylight Time EST||Daylight savings time GMT|
|Sydney Open Sydney Close||16:00-01:00||21:00-06:00|
|Tokyo Open Tokyo Close||18:00-03:00||23:00-08:00|
|London Open London Close||03:00-24:00||08:00-17:00|
|New York Open New York Close||08:00-17:00||
Times can vary during the months of October and April as some countries shift to/from DST.
You can see that in between each session, there is a period of time where two sessions overlap each other. During the summer, from 3:00-4:00 am EDT, the Tokyo session and London session coincide, and during both summer and winter from 8:00 am-12:00 pm ET, the London session and the New York session coincide.
Usually, these can be the busiest times during a trading session because there is more volume when two markets are open at the same time.
Australia (Sydney) shifts two hours. The assumption would be that, Sydney’s open would move one hour when the U.S. adjusts for standard time, but remember that when the U.S. shifts one hour back, Sydney moves forward by one hour (seasons are opposite in Australia).