If you’re reading this article, then you probably have, and you’re not alone. Forex is the largest and most liquid market in the world. Trading can be an incredibly exciting and enjoyable process. That’s why so many people are curious about it and want to know what it’s actually like to trade forex.
Like everything in life, to be successful at forex trading, you need to learn the ropes and know what you’re doing.
Whether you’re a newbie or a seasoned trader, you’ll know that forex trading requires you to prepare, learn, plan, track, execute, and consistently monitor your trades.
Let’s take a look at how all those aspects of trading play out in a typical day for a EURUSD trader.
Early morning: trading preparation
Mornings are usually the time when traders focus and catch up on the market’s overnight performance. These are the quiet times before the storm, when traders prepare themselves before the market opens, by reading the news, scanning the markets, and outlining their trading plan for the day.
Every trader spends time on their preferred news, analysis and charts to identify any events on the horizon that could impact the currency pair they’re trading.
Late morning: action time
Their most active trading for major pairs happens when the market opens at 9:30 EST. The first two hours after the market opens are the most volatile, providing traders with a lot of range to potentially benefit from. This is go-time, and during this time, traders tend to execute the trading plan they’ve set up earlier for the day.
Afternoon: market catch-up and market monitoring
Afternoons are when most traders observe the markets, keeping an eye on the news and gathering information that could inform their next trading plan.
Major announcements can have an abrupt and extreme impact on currencies. So after the most active trading of the day is done, it’s time to listen to the news and catch up with other traders. This is a time for gathering information and forming views on the long and short-term trends in the market. Talking to other informed traders helps traders do that. They get a different view of the market, a perspective that they may not have considered. By keeping up with events, traders aren’t caught by surprise and can find unexpected opportunities that may come up.
Evening: review and journaling
Every trader has their own ritual of activities after the markets close. Most take some time at the end of the day to evaluate how their trading went.
For most traders that means updating their trading journal with the day’s trading activity, capturing what worked and what didn’t. If something didn’t work, it’s smart to identify the reasons for the losses and record them in a trading journal to help make sure the same mistakes aren’t repeated.
These are valuable insights that help inform future trading plans and help traders clarify their focus for the next day of trading and continuously evolve their skills and expertise.
Timezones make a difference
Your schedule might look different depending on the timezone you’re in and the assets you’re trading. In some parts of the world, traders watch the markets late at night to catch the most active times for the EURUSD, or to see news released on the other side of the world. So, that’s an important thing to keep in mind when you decide to trade.