If you wonder when it’s best to trade Forex to get the best results and what the best hours to maximize your returns are, this article is for you. Read on to get the answers to these questions and find out the best trading hours.
While it can be a matter of personal preferences when to trade, and you can allocate your time depending on your daily schedule, let’s see when it’s best to enter the market to make higher profits and when it’s best to keep off trading.
Best days to trade Forex
You may have noticed that on some particular days, markets move more actively than on others. Take a look at the table below and check out the average volatility in pips for three major currency pairs (EUR/USD, GBP/USD, USD/JPY) depending on the business day:
As we can see, all three pairs register the highest volatility on Tuesday and Wednesday. With that in mind, we recommend entering the market during periods of high market volatility. This way, you’ll be able to take advantage of more trading opportunities and maximize your profit even if you are using a trading bot.
Now that we’ve figured out the best trading days, let’s talk about the most favourable trading time. Trading in the foreign exchange market takes place 24 hours a day five days a week. However, currency pairs can move at a different pace at different times. Although Forex is a decentralized market, a significant amount of money comes from banks, and they stick to a certain schedule.
Forex trading sessions can be divided into four major groups:
- North American (New York)
- Asian (Tokyo)
- European (London)
- Pacific (Sydney)
At the beginning of every session, the currencies are gaining momentum:
During the European session, all pairs containing the euro and the pound sterling demonstrate high volatility, with EUR/USD, EUR/GBP and EUR/CHF showing the largest trading volumes. Very often, the trend can commence in the European trading session and continue into the American session.
In the American session, the pairs containing the US dollar are on the rise: EUR/USD, USD/CHF and USD/JPY. During this time, the Canadian dollar, the USD/CAD pair, comes to life. During the American session, the trend may reverse. Besides, important economic reports are generally released in the evening. Those can trigger volatility spikes in currency pairs that include the US dollar.
In the Asian and Pacific session, the pairs containing the Japanese yen and NZD/USD are especially active. Throughout the night session, the market is tranquil since US and European banks are closed. The volatility is low, so the price often fails to gain momentum and break any key levels. So, the market is usually flat with the price trading within the range. For this reason, most traders prefer not to trade at night.
Best intervals for day trading
9.20 – 9.50 – The beginning of the European session. Trading volume is significant. While this trading interval offers a lot of trading opportunities, it’s highly risky as well. If you are a novice trader, we suggest that you don’t rush into the market at this point. Wait till the volatility settles a bit.
9.40 – 10.10 – Trading volumes are still significant, the quotes are moving fast, liquidity is sufficient. Now that the situation has already stabilized, it’s the perfect time to enter the market and place your orders.
10.25 – 11.10 – Volatility decreases, market participants lock in their profits and close their trades. This time interval is the best to start scheduling your next trades.
11.15 – 14.15 – Most breakouts occurring during this period are very inaccurate. Prices start moving sideways. Feel free to take a break. It’s best that you refrain from trading at this time.
14.10 – 15.25 – Most trends have already formed. There’s no sense in opening your trades now. But if you do, trade with the trend and be vigilant. Around 15:30, the trend may pause or even reverse.
15.20 -16.00 – The last 30 minutes of the day session, major market participants start adjusting their portfolios. It may seem that high volatility can bring you some good profits, we’d recommend staying on the safe side as the trading environment is too unpredictable now. Avoiding and managing risks is part of smart trading, remember?
All in all: The usual best trading time is 8 a.m. to 12 a.m. – it’s when trading hours of the New York and London exchanges overlap. These two trading hubs account for more than 50% of all Forex transactions.
When you SHOULD NOT trade
It’s funny how everyone is looking for the best time to trade. And few people think when it gets too risky to trade and when it’s better to avoid the market. It’s highly undesirable that you enter the market on:
- By the end of the week, we all get tired and tend to make illogical decisions. It can be hard to predict market behaviour at the end of the week. Friday is one of those days when the majority of traders suffer losses. Some traders lock in their profits to safely leave for the weekend. Others, on the contrary, jump into the market to make quick money. Prices start going up and down, especially in the afternoon, which can result in substantial losses.
- Banks are usually closed on holidays, market activity is low. On holidays, the risk of losing your deposit increases. You might be hoping for a spike in prices after the holidays, but the market likes to make adjustments. And they are usually not in your favour.
- News releases. We are going to offer you some obvious advice that no one takes anyway: do not trade the news. You can’t predict with 100% accuracy where the price will move after the release of significant news, a statement or a report. At this point, the price movement is often chaotic. So, we recommend exiting the market 1.5 hours before the publication. Refrain from trading for about the same amount of time after the news is released.
While Forex is open around the clock, all traders are human beings who need their rest. That’s why it’s essential to know the trading sessions schedule and market hours that determine volatility peaks. Enter the market when it demonstrates a strong momentum. This way, you’ll be able to monitor price developments better and identify trading instruments with the highest profit potential.
95% of Insurance Firms Upload Data to NAICOM Server
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has revealed that 95 per cent of insurance operators have uploaded their data on its platform as instructed within the last one month.
This disclosure was made by the Deputy Commissioner Technical, NAICOM, Mr Sabiu Abubakar, at an event in Lagos. He added that the commission was optimistic that before the end of the third quarter, the remaining 5 per cent will meet up the deadline.
He submitted that online processing of licenses, approvals and data uploading has started for most of the operational requests of the regulated agencies, stressing that issues arising from this application are being addressed promptly and that good progress has been recorded in the uploading of data on NAICOM server.
The insurance regulator official said NAICOM has trained both its staff and the insurance institution on how they use the portal.
On his part, the Commissioner for Insurance, Mr Sunday Thomas, said the NAICOM portal is one of the initiatives the agency was pursuing its efforts to deepen the insurance market and increase the penetration to a level that is consistent with the nation’s economy.
“As some of us may be aware, the Commission in July 2009, embarked on a comprehensive computerization effort tagged project e-regulation that was meant to transform its operational procedures and the conduct of its regulatory responsibilities by providing a robust, world-class ICT Infrastructure to help implement automated business processes internally and for industry-wide supervision via an integrated platform,” he said.
Mr Thomas noted that prior to the development of the portal, the processing of applications required that applicants physically drop off their applications at the commission with their attendant challenges of delays in processing times, and wasted manpower hours due to back-and-forth in application processing as well as ineffective application tracking system.
He then charged those yet to do the required task to help ease operations by uploading their data.
A Thoughtful Approach to Wealth Management
Across the world, as baby boomers (aged 58-76) near and enter retirement, the attendant transfer of wealth between generations is necessitating a thoughtful approach to wealth management, instigated by common storylines such as this:
“I’m 35 years old and inherited $450,000 this year when my father passed away. I used part of the funds to buy a flat in old Ikoyi, and with the help of a financial advisor, invested the rest ($250,000) in a retirement plan.
“We set a budget so that the interest from the leftover principal could help pay my mortgage. I’m not supposed to touch the investment account…right?”
The coronavirus pandemic has also brought on triple threats to lives, livelihoods, and financial markets, causing individuals and businesses to pause and think about their financial priorities and legacy.
On the minds of wealth managers, therefore, will be a myriad of issues, including:
Devising new ways of segmenting and serving clients across the wealth spectrum.
Creating new and more efficient distribution channels by adopting new and enhanced technologies.
Achieving sustainable and inclusive growth for clients.
The fact that wealth and health needs will merge, leads to goal-based wealth platforms.
Africa: Wealth Rankings (by Country)
Where in Africa do the well-to-do reside and in what numbers? The recently released Africa Wealth Report 2022 shows that there are currently 136,000 High Net Worth Individuals (HNWIs) living on the continent, along with 5,110 multi-millionaires, 305 centi-millionaires and 21 billionaires. It also illustrates that the total private wealth in Africa currently stands at $2.1trn, an amount that is expected to rise by 38% to $3trn in the next decade.
The Future of Wealth Management
The impact of COVID-19 on wealth management organisations and investors is expected to drive both groups to position themselves to thrive in the new normal. For them, this can mean considering several of the following actions as they seek opportunity amidst uncertainty.
Millennials and the ‘Great Wealth Transfer’: Many young people are in line to become extremely wealthy, in what is referred to as The Great Wealth Transfer. Wealth is expected to gradually change hands from one generation to the next before the year 2030.
Without knowledge of money management, saving for the future and smart investing, Millennials could jeopardise their futures. Financial literacy tools will come into play in reinforcing areas of potential strength, such as Logic vs. Emotion (understanding how to manage money based on the risk and potential return); Frugality vs. Extravagance (adopting delayed gratification); and Saving vs. Spending (think retirement accounts, emergency funds).
Younger investors also tend to feel less confident about how to reach their investment goals, which can lead to cautious investing – an irony, as investors with a longer time frame should ideally have the latitude to take more risk.
AI, Machine Learning: Technology such as Artificial intelligence (AI) will continue to make it possible to do far more in less time, and with fewer resources, while Machine learning can help wealth managers recognise patterns, anticipate future events, and create rules – think client calculation engines, modelling and simulation, and analytics. Robo-advising, the trusted AI-driven, virtual wealth management service, will resonate strongly with the tech-savvy Millennial generation and is essential for future wealth management industry growth.
Human and Digital Hybrids: Millennials are currently between the ages of 25 and 40. This is an extensive range. Some of them are definitely keen on self-service, but there is also an appreciable number of affluent millennials who are on the verge of making really complex decisions when they will need human interaction to add real value, through strategic planning and advice. For this group, the key is to not only take advantage of the digital space but also to intersperse it with human interactions – a hybrid scenario.
Transformational Web Delivery via Mobile: Following the initial push to move services online, wealth managers are now cementing a second stage, with a particular focus on ubiquity over-mobile. Websites will deliver an even wider range of services where clients are able to view their investments and transactions, invest in Mutual Funds directly, and place orders to purchase or sell shares, regardless of their location, and while on the go. They are also able to access research reports and insightful market data.
The Planning Effect
Uncertainty should not be a reason to put your future on hold or hamper your ability to grow your wealth and keep more of what you earn. Whether you seek effective funds management, long-term planning, or investment strategy, an experienced wealth management professional can help you develop a personalised plan by carefully assessing your investment preferences and risk tolerance.
CitiTrust Lifts Over-the-Counter Bourse by 0.05%
By Adedapo Adesanya
CitiTrust Holdings Plc played the central role in lifting the National Association of Securities Dealer (NASD) Over-the-Counter (OTC) Securities Exchange by 0.05 per cent on Thursday, August 11.
This raised the NASD market capitalisation by N550 million yesterday to N1.007 trillion from the previous day’s N1.006 trillion as the NASD Unlisted Securities Index (NSI) went up by 0.41 points to wrap the session at 765.28 points compared with 764.87 points of the previous session.
On Thursday, the stock price of CitiTrust Holdings Plc rose by 55 Kobo to N11.90 per share from the N11.35 per share it was sold in the Wednesday session.
A look at the trading activity indicated that there was an 86.5 per cent increase in the volume of securities traded at the bourse yesterday to 111,021 units from the previous trading day’s 59,538 units.
However, the value of shares transacted by market participants went down by 41.7 per cent to N2.7 million from N4.6 million just as the number of trades reduced by 43.8 per cent to nine deals from the 16 deals executed a day earlier.
AG Mortgage Bank Plc remained the most traded stock by volume on a year-to-date basis with the sale of 2.3 billion units worth N1.2 billion, (Central Securities Clearing System) CSCS Plc stood in second place with the sale of 686.5 million units worth N14.2 billion, while Food Concepts Plc was in third place with the sale of 147.8 million units valued at N128.4 million.
Also, CSCS Plc was the most traded stock by value on a year-to-date basis with a turnover of 686.5 million units valued at N14.2 billion, VFD Group Plc was in second place with the sale of 11.1 million units worth N3.3 billion, while FrieslandCampina WAMCO Nigeria Plc in third place has transacted 13.9 million units valued at N1.7 billion.
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