Importance of Time
While trading you need to focus on certain time intervals. As we all know the markets work on time zones. There are 3 major time zones: London, New york and Asia:
London Opens at 08:00 am GMT and closes at 04:00pm GMT
Major volatility at (08:00am – 09:00 pm GMT)
New York time zone opens at 01:00 pm and closes at 09:00 pm.
Major volatility at (09:00 – 10:00 pm) GMT
Asian time zone opens at 11:00pm and closes at 07:00pm.
This session usually doesn’t offer major volatility.
As a trader you need liquidity in the market for you to profit. That being said, you should only trade at market opens or in the first 2-3h of the market open. This will help you in two major ways.
1º- You will have higher possibility of winning when trading in higher liquidity time zones.
2º- You will only focus on the chart at those hours this will help you prevent executing “boring trades” these are trades that you know you shouldn’t do but you still do it because you are bored, this will also develop self control while trading wich is a important trait in a trader.
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