The best months to trade Forex – how to choose a profitable period

Forex trading is characterized by constant changes in market quotes; traders make profits from the difference in price fluctuations. The volatility of financial instruments is not the same in different trading periods, so investors choose the most attractive time frames based on their own needs. Some participants are comfortable trading intraday, other traders choose long-term contracts, and still others prefer weekly time frames. Regardless of the preferences of participants in exchange transactions, there are favorable and ineffective months for Forex trading. In addition, you need to pay attention to the choice of session and trading period.

Trading efficiency by month

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Starting Forex trading is very easy. Enough for this metatrader 4 download. Forex market research shows a decline in the activity of exchange trading participants during the summer and holiday holidays. Practicing traders often keep a trading diary, based on which they can get an idea of ​​the most favorable trading months. Conventionally, the year can be divided into three broad periods, among which there are the best months for Forex trading and time intervals characterized by a decline in investor activity and a decrease in the volatility of traded instruments:

-January-May is a favorable time for concluding deals. After the Christmas holidays and New Year's holidays, good trading conditions are observed. Investors are actively involved in the work, statistics on macroeconomic indicators appear, which can be used in fundamental analysis.

-June-August is not the best time to trade on the Forex market. As a rule, most traders close medium- and long-term positions by the end of May, going on vacation. The volatility of assets is reduced, price fluctuations are less significant, and you can “play” mainly on short-term lots.

– September-December – the end of the year, can affect trading performance indicators for 12 months, so many market participants “catch up” with profits in order to even out effective and ineffective trading periods and obtain a positive balance based on financial indicators at the end of the year.

The best months for Forex trading are favorable periods for traders, which are assessed based on the overall performance of all trading participants. However, each investor can independently choose the most comfortable time frame for concluding contracts on the MetaTrader4 trading platform. In addition, under the influence of world events and news, the market situation may change dramatically. The summer period is characterized by sideways trends - the price of most assets fluctuates within the corridor, without crossing the support and resistance lines.

Trading Sessions

Forex trading involves the work of a trader in a certain time interval - from a minute to a month. Scalping transactions are concluded on minute time frames M1-M5, short-term contracts - time intervals M15, M30, H1, H4, trading periods D1, W1, MN for intraday, weekly and long-term trading. A trader must take into account favorable moments for entering the market in relation to three main trading sessions:

-The work of the European session practically coincides in time with the working day of domestic users. The peak activity of trading participants occurs in the time interval from 9 to 11 am. The session lasts up to 18 hours, the most traded assets are euro/dollar, dollar/pound, pound/yen.

-From 16 pm to XNUMX am the American session continues, during which currency pairs of the basic category are traded well, there is a high probability of making a profit due to the growing volatility of financial instruments. Beginners are not recommended to trade in the evening.

-The Asian session is night trading, which lasts from 3 a.m. to 11 a.m. Sharp changes in volatility rarely occur in the underlying currency pairs, it may be difficult to predict the Japanese yen, but you can make good money on transactions with this currency due to the active movement.

When choosing the best months to trade Forex, you need to take into account trading methods and trend analysis, as well as the time intervals that the trader plans to work with. The peak of price movements and the active growth/decrease of quotes are observed at moments when the largest number of investors participate in trading, on whose mood the supply and demand of the Forex market depends.