Best Forex Trading Time Frame for Beginners - Best Time to Bet

Best Forex Trading Time Frame for Beginners 

The world of forex (foreign exchange) is about the buying and selling of the currencies that are listed for trading to make a profit. For a beginner to work in this area, the best time will be low-key (3 a.m. to 4 a.m. UTC) when Tokyo and London's sessions are live, as they are least risky compared to others.

For more details, beginner investors need a lot of time and technical know-how to understand its work in the first place. So let’s look at each compartment of things for better understanding.

Forex Trade

As with any trade, Forex (foreign exchange) is done on a network of computer terminals and is called over-the-counter. This works almost like a ledger system in that there is no centralized stock exchange like NYSE and LSE to oversee but rather a broker-dealer network that directly deals with it.

In this market, buyers of one currency will bet against another currency based on the interest rate, geopolitical events, and inflation. This area of trade is for those who have big capital investments, like hedge funds, big multinational firms, and large high-net-worth individuals.

Forex Market Opening hours 

Forex market is operating across the world in the major business centers of the world in the cities of Tokyo, Sydney, Hong Kong, Singapore, Frankfurt, London, and New York, among other prominent business centers, with a work schedule of 24 hours a day and a 5 and ½ week time frame.

So it’s like covering the entire world in a one-way trip, starting with Tokyo and ending in New York. The opening hours of forex markets across the world are given.

But for a beginner, starting with the best time frame in the 24-hour schedule is super confusing. To de-clutter, we will see about that in detail below.

Forex Trading Time Frame

For beginners, the best time frame for the 24-hour schedule is based on the amount of capital that you are going to invest. 

• Select which currency you are going to bet against that will significantly rescue you from the brutal schedule. 
• Look for forex session pairs in the time zones that have a better possibility of testing your skills. 

For beginners, the less risky schedule will be during the Tokyo and London sessions, which are from 3 a.m. to 4 a.m. UTC and are a safe bet as the aggressive American investors will be sleeping.

It is the best bet to test one’s skills in the market. If you are a highly ambitious and aggressive type of person, then New York and London sessions from 8 a.m. to noon UTC will feed your ambitions in the market; they are highly volatile, aggressive, and downright risky.  

As a word of suggestion, the best possible answer for beginners' trade time frames is to follow the circadian rhythm, which is the biological clock where our human brain works most effectively from sunrise to sunset in whichever geographical location you are located. Start trading at those times. 

Trader types and time frame  

In the Forex trade, there are many types of traders, each with different interests and time frames in mind.

• Short-term Swing Traders:
  • As the name suggests, these are the people who engage in withholding and buying currency when it fluctuates. It is for beginners to test the market or for risk-averse players. 

• Long-term position traders:
  • This type of trader will be thinking of a long-term strategy. They will hold the currencies for the long-term possible appreciation, which is like the value of the currency increasing against other currencies, and it will yield them good profits. 

These types of traders are not the only ones in the market. But they are the ones beginners need to look out for, as they have the best or worst strategies to teach you in real-time market scenarios. 

Beginners Mistake to Lookout for 

As non-experts in the Forex trade, people will make mistakes as they are yet to understand the appreciation and depreciation of currencies, inflation, interest rates, growth rates, and geopolitics. We have given a list of things one needs to look out for. 

• Verify with your country or region's regulators that forex trade is allowed for private individuals. 
• If you are allowed, then check whether you are registered with a brokerage that is verified by the law of your land.
• Don't put all the eggs in one basket; try to diversify from the beginning. Some people will stick with one currency pair, which may lead to long-term possible good or bad depending on the above-said factors. 
• If you are really into forex trading, persistence and perseverance will make you think long-term and in good faith, and your profit margins will increase.