Of course, the trading system was chosen by the trader, and in particular, the trading session on forex will determine the future profitability of the trade.
Today we will talk about the specifics of the London trading session, which in English is called the trading session of London.
What is the concept of a trading session?
This is the time interval for the duration of which the forex market is trading in currency: the representatives of states, which are brought together by geographic locations (trades), trade.
The final results of this kind of activity are displayed to us as changes in currency quotes that exchange players successfully apply for profit.
Because the forex market covers the entire world community, and in the world, there is a sufficient variety of time zones: due to this, the activity of trading at different times is increased in various regions of the globe.
This is quite logical: at some point, some trading sessions are coming to an end, while others, on the contrary, open or are at the peak of activity.
Also, the choice of a specific trading session depends largely on the rationality of using certain trading tactics of the market.
This factor affects many key moments of the market: it determines the features of the direction of the trend, predicts the market reaction to the important events published, and so on.
Do not forget that the analysis and the maximum accurate understanding of the features of the interesting or selected trading session largely determine the future results of trading on Forex: this is an indispensable component of success for the exchange player.
The London trading session is attractive because it has several advantages, including significant trade volumes.
After the beginning of this trading session, the demand for European instruments is significantly increased: its growth is especially relevant for couples, which include the British pound sterling.
The sense of the activity of the exchange player is to get the income from the transaction, which functions for a maximum of one day.
The schedule, which the player will need to apply - 15 or 30 minutes, the same trading option is of a rather short-term nature: if you want and need, you can both use indicators and neglect them.
The option of optimal trading tactics is «Beginning»
Despite the interesting characteristics, the sense of the strategy is quite simple:
1) the trader must create pending operations at the moment of this session;
2) you can use the popular currency pair EUR / USD
3) can work with pairs such as AUD / USD.
In this tactic, it is important to observe and analyze the observations of market speculators: they form the majority of applications in the first half-hour of the London session (for purchase and sale).
The result: an increase in the volatility of the value of currency pairs - a change in volatility.
Knowing this information, a trader can successfully use it for their purposes.
In other words, the use of such a variant of the strategy implies from the player's side the opening of orders during the first half of the trading day.
And do not forget about the hourly difference and the transition of the country from summertime to wintertime. As for tips, you can use various Internet resources (tried and tested).
The main task of the trader who uses the «Beginning» is to open several pending orders while choosing the most optimal for this moment.
Following the rules below, a trader can achieve an effective and profitable result.
The main thing:
- correctly open a position;
- correctly set protective orders;
- choose the most suitable currency pairs.
Please note that a few minutes before the immediate beginning, it is extremely important to open two orders in opposite directions: this method allows you not to miss the movement of the currency pair.
Also, experts advise not to open a position in the direction of the market, but to do a little differently - to open a pair of pending orders, setting them as follows:
- one order - for sale, the second - for purchase;
- the value of the stop-loss order will be the same for both orders;
- Orders are located at an impressive distance from the current market quotation.
Also, when trading «Start» considers such points as:
- High, Low levels (arising at the start of the trading session) breakthrough well, it is very difficult, but if the breakdown takes place, then proceeding from this it is possible to determine the long moving price level in the chosen direction;
-if such lefties are designated, we make an offset of about 5 points on both sides, and then - we form several pending operations;
- The stop-loss must correspond to the value of the reverse transaction.
- Do not set the take-profit, but rather close all orders in manual mode (after 2.5 hours as the session started).
Using these trading tactics, you do not spend too much valuable time, but on the contrary, save it: the total strategic costs over time do not exceed 3 hours.
Despite all the advantages, there are several drawbacks: in situations with flat, its use is simply impossible.
And do not forget that for effective results, you need to practice in advance on the demo account.
The size of the transaction, optimally -3% of the entire player's deposit.
Happy trading in the London session!
