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Forex Market Structure Approach.



 Forex trading approach

1. A Forex trading strategy is a system that a Forex trader uses to determine when to buy or sell, together with technical and fundamental analysis for building confidence when executing trades.


Components of being a professional trader

* You need a trading plan / Weekly structure approach.

* You need to know trading hours (when & when not to trade).


Forex trading hours, market open and market close intervals.


1. The Forex market is open 24 hours a day in different parts of the world, this ability of the Forex market tradable over a 24-hour period is due to having different parts of international time zones.

2. The actual tradable times for retail Forex traders is 24/5 ( five days per week). The market opening time is every Sunday 12AM GMP with the open of Sydney session & the market closing time on Friday is 12 AM GMT with the closing of the New York session.


The 4 Major Forex exchanges:-

The four major Forex exchanges are located in London, New York, Sydney, Tokyo( Asian).


Trading sessions ( when & when not to trade).

1. The forex market can be broken up into four major trading sessions: The Sydney session, the Tokyo/Asain session, the London session and New York session.

2. You need to verify each session's time-zone of your country to know when they occur.

3. E.g ( The best time to trade Forex in India is generally between 1:00 PM to 1:30AM IST). These tradable sessions are London and New York sessions.

4. ( Spot them in your time - Zones) These two trading sessions account for more than 50% of all Forex trades.


Forex sessions / Trading hours


Non - tradable hours

1. Sydney session.

2. Asian session

Tradable hours

London Session (1:00 PM - 10:00 PM IST)

New York Session ( 07:00 PM - 1:30 AM IST)


A professional trader trades only 2-3 times a day on London & New York sessions only. 


Forex trading plan / Approach

What is a forex trading plan?

A trading plan is an organized approach to executing a trading system that you've developed based on your market analysis and outlook while focusing on risk management and personal trading psychology. A trading plan is created to strictly reduce the number of bad trades. 

Here are 4 things that every plan should include:-  

1. Skill Assessment. Are you ready to trade? ( learn before you earn).

2. Set risk level. How much are you risking on one trade?

3. Set realistic goals.

4. Trade preparation ( Set exit & Entry points).



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