It seems as if the “How Are They Making Money?” question on the minds of the Forex traders has no end. With new products and strategies coming out every day, how can a trader know what time to get in or out of the market? Can’t they just read what is being said? Isn’t there too much information on the internet about money making in the foreign exchange? Let’s look at some “How Do They Make Money?” answers.
Currency Day Trading (CDT) has always been one of the fastest growing ways for private investors to make money in the markets. Traders use CDT to “lock” an asset overnight and then trade it later in the same day. The idea is that if the currency continues to move in the same direction, with little or no variation, then it will eventually reach a point of exhaustion. At this time, the investor can sell and buy the asset and once again make profits. Most Forex trading programs can enter and exit the market for you at any time and provide real time data. This allows a trader to decide when it is time to enter or exit the market and still be able to make informed decisions.
If you think CDTs are popular, you might be surprised to learn that the Forex markets do not operate at all 24 hours a day. For most of the time, financial institutions and banks close down shop for the day. When they do re-open, however, they let the banks and financial institutions know what time the markets will be open and then close them up for the evening. This is how the major currency trading centers around the world operate.
How do you know what times the Forex markets will be closed? You can’t tell for sure how long the markets will be closed by looking at their website, because there will always be an opening time and an ending time. The best way to decide which times to trade is to follow the news. It’s better to buy currency when it’s closed than to buy it when it’s opened. Of course, when it’s opened, it’s just as good to sell it when it’s closed as to buy it when it’s open.
Other things you can use to determine when the market is closed is to watch your local news stations. Are there any events being held near where you live? If so, this could be a good time to move your money into your account. The two markets that have the heaviest traffic are the New York Stock Exchange (NYSE) and the NASDAQ (national association of securities dealers). These are some of the biggest financial centers in the world, and usually feature very regular closing times.
There is really no way to accurately predict how long the Forex market will last. Markets may close for one reason or another at any given time. If you want to make the most money possible with your trades, be sure to keep your ear open for any and all signs of movement in the market. Follow the news, and stay informed. This will allow you to maximize your return on your trades and help you avoid losing money.