Many traders believe that trading during specific market hours can make or break their success. There are generally four recommended times to trade, depending on the currency pair you’re trading and the market hours. However, I discovered that trading during these so-called “best” hours doesn’t guarantee success.
My Personal Journey with Trading Time
In 2018, after trading for about five years, I noticed that I was missing out on trades due to my trading schedule. I was waking up at 5:30 AM to analyze the markets and place trades before heading to work. However, I thought that trading at midnight, when the new trading day starts, could help me improve my returns.
So, from September 2018 to March 2019, I experimented with trading at midnight, staying up late to analyze the markets and place trades. After eight months, I evaluated my trading performance during this period.
The Results of My Experiment
To my surprise, I actually lost 11% of my account during those eight months, and my win rate dropped to just 20%. This led me to rethink my approach to trading time and the lessons I learned from this experience.
Key Lessons Learned
- Being fully awake and alert is crucial when trading. Trading at midnight meant that my cognitive abilities were reduced, and I was more likely to make poor trading decisions.
- Don’t worry about the “best” trading time. Instead, focus on being a swing trader with a longer-term view. This way, you won’t stress about missing trading opportunities during specific market hours.
- Master the basics of trading. To succeed in trading, it’s essential to master the basics of trading and develop a solid trading strategy.
After this experience, I returned to my original trading schedule, waking up at 5:30 AM to analyze the markets and place trades before work. This worked much better for me and proved that the “best” trading time is not a one-size-fits-all solution.
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