When first learning how to trade in the forex market, you are often looking for the little easy to understand trading concepts to master first, then move on to other trading tactics. One of the first mistakes many traders can make is to be the early bird trying to catch the worm. In the trading markets, this rule does not apply. In reality there are best times to trade forex and unfavorable times. Instead of starting your day off with vigorous trading, sit back and watch the market for a couple of hours to see how it’s going to shape up for the day.
The 10 am rule is a great tool to use when you are getting to know the forex trading market. If you want to buy forex stock, regardless of the reason for purchasing a particular stock, you should wait until 10 am and see what the forex stock is doing. This gives you the opportunity to make sure your tip is correct and the stock in the ideal place for a buy. This is a great tool to protect your investments and give yourself a “cool down” period, to avoid making rash mistakes at the start of a trading day. By waiting until after 10 am you can avoid the common early sudden reversals that have gotten many traders before you. We have many more Forex Investing Help Articles Now Available.
The 10 am rule can be used to track both highs and lows. If you watch a high sector in the morning and follow it throughout the day, compare where it’s at around 10 am, then at the end of the day and you will likely find the stock’s high for the day was around that 10 am window. The same can be true for lows. This is a great tool to use when curious about how a stock with peak or fall during the trading day. Use this example to watch any forex stock, and then apply it the next day to one you actually want to buy. If you find the same pattern working for you then use it to buy when prices are low and sell when they are high or just to flush out your investments.
By using this rule, you will never have to find yourself chasing trends or worrying about losing an opportunity to buy or sell at the best time. This is a valuable addition to your trading strategies and should be used with the other tactics you use to create a more successful trading adventure. We have many more Forex Investing Help Articles Now Available.