Which session to choose for trading on the stock exchange
When starting to trade on the stock exchange, a trader faces a lot of questions, one of which is - During which session is it better to trade.
Schedule of trading sessions – https://time-forex.com/torgovye-sessii-forex
After all, quite a lot depends on the timing of trading, from market volatility to the ability to open transactions.
When answering this question, first of all, you should take into account the very availability of opening transactions on a particular asset.
For example, you can trade cryptocurrencies 24/7, that is, at any time, regular currencies 24/5 around the clock on weekdays, precious metals 24/5, stocks 8/5 only during stock exchange hours, commodity futures during stock exchange hours, but there may be nuances.
In this case, it will not even be possible to place a pending order, because the trading platform refuses this action. And this is logical, trading is not ongoing and there is no current price for the asset.
The situation is similar with shares of companies in other countries; European companies are traded in the European session , and Asian companies are traded in the Asian session .
Cryptocurrency trading
Cryptocurrencies can be called the most convenient asset for trading, since they can be traded at any time, even on weekends.
News that affects the rate of digital money can also appear at any trading session, but news from the United States has the greatest impact on the crypto market. As a rule, this news is negative.
Trading currency pairs
You can trade currencies at any time of the day, except Saturday, Sunday and holidays, especially if you open long-term or medium-term transactions.
But in general, the volatility of currencies depends on the trading session, for example, the EURUSD pair is most dynamic in the American and European trading sessions. Although transactions on it can be opened at any time of the day.
Precious metals and energy carriers
The trading schedule for gold and silver is practically no different from trading in currency pairs, that is, you can open transactions on weekdays, around the clock.
In most cases, brokers use CFDs and this allows them not to pay attention to which exchange they are trading on.
The situation is similar with oil trading; this asset can be traded on weekdays, without paying attention to the expiration dates of the contract if trading is carried out using CFDs.
In conclusion we can conclude:
The choice of session for exchange trading depends on the following factors:
- An asset, since for some instruments trading time is limited by the opening hours of exchanges.
- Strategies – for a news trading strategy, you should choose those sessions during which news comes out that affects the price of the selected asset.
- The type of contract you intend to trade with
Well, not the last factor is the comfort of the chosen time, since if it is 3 o’clock in the morning in your country, you are unlikely to trade effectively just because you only need this trading session. It is better to change the asset to one that is more convenient for you.