What is the Best Time to Trade Pocket Options? | Beginner’s Guide

Binary options trading has the advantage of being available around the clock. This allows for trades to be made whenever and wherever is most convenient. Regrettably, not every hour of the day is created equal, and not every hour of the day is beneficial for a trader. When it comes to picking the optimal time of day to trade, there are a number of variables to consider. Here, you’ll discover a detailed explanation of how to determine the optimal trading session for yourself. A trader’s time is as valuable as his or her capital.

 

Trading hours

 

Finding the optimal trading time for your needs begins with familiarizing yourself with the various trading hours. There are currently 4 markets, each with its own unique trading hours. Our business hours are based on the 00GMT timezone.

 

New York Trading Hours

The New York Stock Exchange, which is open Monday through Friday from 8 am to 5 pm, is the world’s second largest stock and foreign exchange market. Since most transactions involve US dollars, that’s where most American traders call home. The dollar’s clout as a global reserve currency means that its trading hours attract considerable attention from investors.

Tokyo Trading Hours

Tokyo Trading Hours, which run from 7 p.m. to 4 a.m., represent the Asian trading hours in which many Asian countries, including Singapore and Hong Kong, participate. These nations are becoming increasingly active participants in the foreign exchange market, particularly in the USD/JPY and GBP/JPY currency pairs. When trading stocks or currencies from Asia, now is the best time of day to do it.

 

Sydney Trading Hours

Sydney Trading Hours, the world’s smallest, are from 5 Pm to 2 AM. A large number of traders, however, view the afternoon opening of the market as a benefit because they are free to devote more time to trading once they have finished their regular day jobs. Which allows them to give their full attention to their business.

 

London Trading Hours

The most important foreign exchange market takes place in London, and it is open from three in the morning until noon local time. London’s outsized influence on the market is hardly surprising, given its status as the world’s trading hub. As a major factor in and influence on market activity, these trading hours are highly valued by many investors.

 

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Factors to think about

 

If you’re having trouble deciding on the best trading hours for your purposes, here are a few things to keep in mind.

Announcements and news releases

The timing of news announcements is one of the many variables that can affect the best time to trade. The effect of announcements and news on a market’s performance is substantial. The market reacts strongly whenever important news is released. With this, you should always check the news before making any major trading selections.

If you rely on fundamental research of the market, it’s best to trade when you can keep up with the newest news.

Reduced background noise

 

The “noise” is any distraction or obstacle that prevents you from making profitable trades. Tasks, classes, extracurriculars, and other commitments all contribute to this cacophony. When you have obligations like these, trading is the last thing on your mind.

Therefore, you should ideally trade when doing so won’t conflict with any other obligations you have.

Connectivity

 

You wouldn’t want to be unable to make important trading decisions due to a sluggish connection or even a power outage. While ideally everyone would just upgrade to a faster connection, this may not be a realistic option for some people. Choosing a time of day when the connection is more stable is the easier option.

Category of stockbroker

 

Whether you’re a day trader, swing trader, or long-term investor can influence your decision as to when you should be trading. There is a wide variety of traders out there, and they all have their own unique trading styles and methods. One sort of trader loves to enter and execute transactions before and after regular trading hours, while another prefers to trade during the most active periods of the trading day.

Market Tactics

 

The trading technique employed is yet another consideration that might have a substantial impact on the time spent actually trading.

In order to be successful, many trading methods require a market that is both volatile and very transparent in terms of price fluctuations. Although substantial profits can be made in volatile markets, the risk involved must be carefully considered. The point at which a market becomes volatile varies depending on a number of factors. The timing of the strategy’s execution is crucial regardless of whether the market is tumultuous or calm.

 

When to Avoid

You should also avoid trading during potentially harmful moments. One time to stay away from is the initial few hours of trading on Monday mornings. This is because the market is still processing the previous week’s activity and is therefore moving more slowly than usual. National holidays are another period to avoid if possible. Most banks are closed on federal holidays, and since they play such a large role in the economy and the market, no business gets done.

If the market is acting strangely, you should refrain from trading as well. If you get the gut feeling that something is off with the market or that it is moving in a direction for which there is no fundamental reason, that is a huge red flag. If this happens, it’s important to investigate the cause, which might be anything from a simple technical glitch on your end to breaking news or an announcement regarding the asset to a shift in the position of trading institutions.

 

Conclusion

 

Therefore, the optimal time to trade is whenever you are most relaxed and able to focus. Decide which market’s trading hours you’ll be using (New York, Tokyo, Sydney, or London) and work backwards. Depending on where you are, you may have more options in these marketplaces. Being physically near to the center of the market gives traders an advantage since they can react quickly to breaking news and announcements and keep regular business hours.

 

If you want to pick the optimal time for trading, you should also think about the things we’ve discussed in this post. Timing is vital in trading, thus it is crucial that traders keep that in mind at all times.

 

Check out Pocket Option’s demo account to experiment with the market’s various trading sessions. You can practice live trading with virtual money using this account.

 

Do forward this article to others if you find it useful. Do not hesitate to contact us with any inquiries, comments, or ideas you may have regarding this matter. Have fun!