AttractionFor a start the FX market is vast, trading on average over 3 trillion dollars a day, this eclipses all the other markets. This injects a massive amount of money to trade forex in relation to other markets i.e. having someone else who's prepared to take your order. Often I hear how the market is open 24/5 true, however there are some specific times you need to be aware of where new money or traders tend to enter the market on mass i.e. Tokyo banks opening, then mainland Europe, followed closely by the largest market London, which makes up around 80% of the traded volume!Time Is MoneyAs an investor you need to be putting your money to work at the best times i.e. new investors will be coming into the forex market and hopefully seeing the same things that you identified, for instance a tripple top at a significant overlapped resistance area, at the London open will often be a good place to see a set up to trade forex.Enter Now Or LaterThe thinking is simple if a market has been climbing through the night from, the Tokyo open then who wants to invest at the top of a move, now that's not say it won't go higher, it often can and does, however speculators will usually wait for a retracement to enter at a better price. This makes sense as in the example the Tokyo traders probably have had a profitable session and are waiting to go home, so if you've had a profitable day you're likely to do two things, close your position or take some of it off the table and bank it, this will lead to the currency falling. Now if the push to the upside looks like it hasn't hit clear targets yet, then often traders will attempt to push the price back to test the highs and this is when we find out if the move is real or not.NewbiesOften newbie traders coming into to trade forex and are quite bewildered by why the currency has suddenly reversed after such a strong move. Put yourself in the shoes of fresh investors entering the forex market and ask yourself do I want to be buying at the "temporary end of a move" because you are opening yourself to bad chances if you do, and that is never in a traders greatest interest to trade forex. Often the hardest thing to do is accept that a move has begun and you're not involved in it, it sucks but it's part of Fx Trading I'm afraid.Where To StartThe point here is to highlight you to the best times and when your competitors are likely to come into the market to trade forex and how fresh eyes will perceive price. No matter what, all charts will show you 1 thing, what the pair has done and where it is exactly at the time you see it. To trade forex successfully you have to see the market as other investors do, that way you will make a massive leap forward in your ability to trade forex, this though is just the beginning.
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Many new traders come to Trade Forex completely ignorant as to when the main money flows are coming into and out of the Forex market and what that really means to you as an investor.
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