Having a trading schedule may seem like a strange thing for most traders, considering this activity is very flexible and we’re not forced by anyone to work during a fixed time frame. Even though that’s true, several factors make sure to set several periods throughout the day that will be optimal to find great opportunities. If last time we’ve provided a few valuable trading tips during COVID-19, today we want to show you how to build a trading schedule, especially now when volatility is elevated.
Choosing the right FX pairs
It all comes down to the area you currently live in. Do you live in Europe? Great! That means pairs that have the EUR, GBP, or CHF will be the most suitable for you to trade. If we look at the data, these pairs are highly active during the London session and that will be the most appropriate period to trade FX. Those living in Asia could focus on Yen pairs, Aussie, or Kiwi, while residents in North America are lucky since the US dollar pairs are the most active.
What FX pairs you trade will heavily influence your schedule. There’s no point in staying in front of the charts in the middle of the night when there are plenty of pairs active during the day. You could trade late in the night when there’s a major event happening, but it will be hard to trade when you should sleep.
Finding opportunities when sessions open/overlap
One of the key things traders don’t consider when building their schedule is that they should be in front of the charts at least 30 minutes before a particular trading session starts. It’s important to do that since liquidity is very high and all the trading signals occurring then will have a higher chance of turning into winners. Trading momentum breakouts will be very effective since there will be a massive order flow supporting the price action development.
Having a trading schedule will also help you in avoiding overtrading. It’s very common among retail traders to be tempted to open a trade when it won’t be the case and with a schedule in play, you’ll know that’s not the best time act. Your broker will not like it (since spreads/commissions revenue will decrease) but the best way to approach this volatile market is by keeping a conservative approach when placing trades. A lot of opportunities will be missed, but keep in mind that professional traders first evaluate risk, and only then the potential reward.