The Moving Average
Learn about the best time to trade as a day trader for success. Use the free Simple Sessions indicator to identify high volume trading periods. Tokyo session is not recommended.
The Best Time to Trade as a Day Trader
As a day trader, knowing the best time to trade can be the difference between success and failure. With so many people asking this question, it’s important to understand what the best time to trade is and why. In this article, we’ll discuss why trading during highly active market sessions is important, how to identify those times using indicators, and why you should avoid trading during Tokyo session.
Trading During Highly Active Market Sessions
When everyone else is trading, that’s when the market moves very quickly in a short amount of time. This is why highly active market sessions are the best times to trade as a day trader. During these times, traders have more opportunities to make quick profits before the market slows down.
Identifying Highly Active Market Sessions Using Indicators
To find out when highly active market sessions occur, you can use indicators. One of the most popular indicators used by day traders is the Simple Sessions indicator by TTF. This indicator shows when London session starts in green and when New York session starts in red. It also displays the very high volume area between the end of London session and the beginning of New York session when both sides of the world are trading.
These are the three times that you want to trade because as you can see price moves a lot. Using the Simple Sessions indicator, you can easily identify the best times to trade. This indicator is free and can be found by clicking the indicators tab at the top of your screen.
Avoid Trading During Tokyo Session
While highly active market sessions offer the best opportunity for day traders to make profits, it’s important to know when not to trade. Tokyo session, which is typically from 12am to 4am EST, is a time when the market is less active, and price movements are small.
Trading during Tokyo session can be risky as it’s more difficult to make profits during this time. It’s important to avoid trading during Tokyo session unless you have a specific strategy that works during this time.
Tips for Trading During Highly Active Market Sessions
When trading during highly active market sessions, there are a few tips to keep in mind to maximize your profits and minimize your risks.
1. Stay Focused: Highly active market sessions can be overwhelming, so it’s important to stay focused on your strategy and avoid distractions.
2. Use Stop-Loss Orders: Use stop-loss orders to minimize your risk during volatile market movements.
3. Don’t Overtrade: Don’t take too many trades during highly active market sessions as this can increase your risk and reduce your profitability.
4. Take Profits Quickly: Take profits quickly during highly active market sessions as the market can change direction quickly.
In conclusion, understanding the best time to trade is essential for day traders. Highly active market sessions offer the best opportunity for day traders to make quick profits, and it’s important to know how to identify those times using indicators. Additionally, it’s important to avoid trading during Tokyo session unless you have a specific strategy that works during this time. By following these tips, day traders can maximize their profits and minimize their risks during highly active market sessions.
