Is It Important To Trade All The Forex Sessions?
Well, that depends who you ask about Forex sessions.
There are 4 Forex Sessions in total, but there are only 3 Important Forex sessions that every trader needs to know.
Asian, London, and New York Forex sessions. The Australian and Tokyo session are combined because they closely overlap each other, so they are usually combined into what is called the ASIAN session.
Should I Trade All Of These??
Simply put, it’s not easy to trade all 3 Forex sessions, so you’re better off picking sessions that you are actually awake to trade.
The Forex markets are open to trade 24/5—the whole week. So if you plan to trade all these sessions, you will be a zombie come the end of the week.
I actually used to try to trade all the forex sessions. Naturally, I ran out of steam and started to burn out.
You start making decisions you never thought you would make when you’re running on fumes.
So, although there’s no doubt that there are opportunities in all of the Forex sessions, it’s unrealistic to expect to capitalize on ALL of them.
Try and set up a trading schedule that you can consistently trade that allows you to capitalize on increased volatility in the different sessions.
There is an article on what volatility is and how it affects your trading here.
If you know what I’m talking about, you probably already know that out of the 3 Forex sessions, the Asian session has the least volatility.
So when you come up with your trading schedule, make sure you try and make yourself available to trade the London and New York session.
The London and New York sessions have the most volatility, which means opportunities that present during those sessions have a better chance of converting into profitable trades.
But don’t write off the Asian sessions.
Sometimes they are some very profitable opportunities that do present at the New York/Asian session crossover, so don’t lose hope if you stay in an awkward time zone and have to wake up at early hours and feel like you have to force-find trades to make it worth your time to wake up.
Your time zone will affect your trading and what Forex sessions you’re most able to trade, unfortunately.
I stay in South Africa, so we’re running on GMT +2 over here.
So when I wake up, I’m right on time to start trading London session because London runs at GMT +1, so I don’t have to wake up at awkward hours to trade.
If you live in the United States and you live in Los Angeles, for example, which runs at GMT -7.
You would probably have to wake up in the early morning to have a chance at taking advantage of the London session.
The opposite is true if you live in Tokyo, which runs at GMT +9.
You would find yourself staying up late for the start of the London sessions, and you might have to skip the New York sessions altogether, and if I’m honest, I don’t wish this situation on anyone, I can’t lie. It seems like a tough place to trade from.
It is not so important that you focus on trading specific Forex sessions.
Just that throughout these sessions, you still exercise sound risk management. No one Forex session is more important than the other.
There are times when the London session has low volatility and time when the Asian session has high volatility.
Anything can happen in this market.
Be ready and prepared to adapt your schedule if you travel a lot but always use a consistent risk management strategy so you can capitalize on whatever the market presents.
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.