There is a vast and diverse spectrum of indicators for performing effective financial operations that investors should definitely be aware of so as to effectively invest and trade profitably and stably. Other than effective trading systems, the correct approach to money management and the selection of a lucrative trading asset, an even more important factor is choosing the ideal time for trading on the financial market. This indicator enables investors to conduct their market activity accurately on an exchange platform, the operation direction of the trading system, time and range of trading operations and the selection of a lucrative investment asset. When all of these indicators are taken into account, you gain access to a wide spectrum of opportunities for effective trading that produces results. Today, we are analyzing the role of time in trading, as it is the most fundamental indicator for choosing an effective trading strategy, a base asset, and the investment duration.

how the factor of time affects trading and investing

So, there are three main online trading sessions:

• The European
• The American
• The Asian

On every international trading platform, you can trade on the market 24 hours a day, 5 days a week. The European and American session takes place during the day, and the Asian does overnight. As a result, we are left with two primary trading periods on the market, day and night trading. However, there are several more unusual periods for working on the market as well that you also need to know about when trading and investing on exchange platforms. First and foremost, it is worth paying attention to when important macroeconomic data is officially released, such as the Non-Farm Payroll. The second period of note, that become accessible not all that long ago, is weekend investment, using innovative investment tools such as cryptocurrencies and ICOs.

We propose going through and analyzing how to trade during all the outlined periods.

Day trading on the financial market

When day trading, all investors are often faced with an array of problems that play a critical role in determining investment performance. This includes the maximum activity of asset price movement, a large number of possible news drivers and factors that influence the price of assets, as well as the presence of professional investors on trading platforms with very significant amounts of funds for investment. As a result, traders conduct day trading operations with various tools on the highly active, yet rarely forecasted market, which plays into the level of financial risk and the decision of which strategy to follow for evaluating trading rates. To create the most effective day trading regime you need to accurately choose a system for trading, a strategy for money management and assets for trading on the financial market.
Let’s analyze more effective approaches to day trading. It is worth noting off the bat the maximum performance level of the various indicator strategies. For example, the classic strategy based on a combination of trend indicators and oscillators works.
Indicators for evaluating the market create the opportunity to more effectively analyze volatile asset price fluctuations. This leads to investors achieving more accurate forecasts and technical signals for placing trades. The strategies for this method produce better statistical indicators for profitable trading contracts during the day.

Along with any effective day trading system, you need to keep yourself informed of market news, such as the publication of statistics, all types of financial news, and various political statements. So you can more accurately identify the effective levels for placing trading positions within a narrow range of time. Other than that, new can be used as an effective trading signal for placing lucrative contracts.

The best assets for day trading are classic financial tools, including currency pairs, metals, raw materials and assets. So, let’s review the most significant indicators and factors for achieving success day trading:

The optimal indicators for day trading:

• The use of the most accurate and effective indicator systems for forecasting
• Trading with primary currency assets with maximally liquid contracts
• Taking macroeconomic new into full account when forecasting the market
• Strict adherence to a risk management strategy

Day trading sessions on the financial market will produce the best possible results under these conditions.

Night trading

Trading on the Asian markets is both technically and financially the opposite to day trading. If you conduct trading operations during this period, keep in mind that it has a noticeably lower level of financial activity, a minimal number of total trades and the rates have very sluggish volatility. Therefore, we have a market with a very narrow range of price fluctuation and a very level of predictability. Taking that into consideration, the most effective trading strategies for night trading are various channel systems.

Here you can use indicator systems based on Bollinger Bands, as well as chart approaches to forming channels.

If they trade within the confines of a market fluctuation channel and use short-term contracts with two directions of price movement, traders can generate the most profit under the right circumstances. According to statistics, night trading provides investors with more accurate profit indicators throughout the exchange session.

The most effective assets for night trading are leading currency pairs and raw materials.

The ideal conditions for night traders

• Use simple chart or indicator trading strategies in channels
• Use assets with the highest levels of profitability and price movement volatility
• A narrow timeframe for trading with contracts up to 2 hours
• Adhere to risk management rules with liberal indicators

When considering time as an effective indicator of trading conditions on the financial market, it is worth mentioning the importance of choosing the right trading platform. In order to use a wide array of strategies and conduct your market activity on the most professional level, you need a platform that provides a selection of forecasting tools and quality services for trading. Besides that, when you choose your trading partner on the financial market, look into the security of the trading terminal. Pay special attention to if the company is licensed by regulators.

Trading on the Non-Farm Payroll (NFP)

This is a relatively exclusive trading regime, however, it can produce astounding results. It is referred to by the trading professionals who’ve adopted this approach as “trading the news”. We decided to consider this trading period on its own for several reasons. The issue is that the various news sources and statistics have an impact on the predictability of market volatility, therefore complicating the use of basic forecasting approaches and strategies. News is often released upon the opening of the American session. In the majority of cases, investors avoid trading on the financial market during these periods due to the high likelihood of volatile market fluctuations. However, the correct implementation of this strategy can produce good results in a regime with minimized trading risks.
So, trading the news is based on an incredibly simple and logical principle, negative data means the market will fall and positive will raise the price. Therefore, if you quickly evaluate the data the moment the statistics are released, you can place a trade with the highest likelihood of generating profit. In this case, it is recommended that you conduct your trading operations the moment the American session opens every Wednesday, as that is when the most important and meaningful macroeconomic statistics are released.

The ideal conditions for trading the news:

• Vital macroeconomic data has recently been released
• Select currencies and funds as assets
• Take trading positions with a duration of no more than 24 hours
• Use classic risk management

Trading and investing over the weekend

Investing and trading over the weekend, as well as during holidays, has become possible thanks to the emergence of innovative financial tools like cryptocurrencies. This type of investment asset isn’t regulated by any official body and has some nuances in terms of price-setting and liquidity. The issue is that the course of particular cryptocurrencies is directly dependent on the activity of investors. The more traders buy a specific coin, the higher its price and its system of capitalization. It seems to follow classic economic laws, however, on the cryptocurrency market, it takes a hypertrophic form and rate movement is a more important technical factor. Other than that, cryptocurrencies don’t have a central measurement for liquidity, therefore, the asset prices can vary widely on different exchange platforms. Take the time to familiarize yourself with these nuances to investing on this market.

With regards to the choice of trading period, classic approaches to evaluating and forecasting the market are just as applicable here as they are with other tools. Indicator and chart trading system work very well. However, when choosing a trading system, you need to pay close attention to the news regarding the market background. It is very important to follow the news on the regulation of this sphere by governmental bodies.
Other than the typical trading and investment conditions, you need to be very careful when you choose your trading asset on the cryptocurrency market. This is due to the fact that a large number of tools will never produce any positive returns for investors. It is very important to take these indicators into account when choosing a tool for investing:

• Systems using Blockchain
• The prospects of the asset in the long-term
• The system in place for receiving profit from the investment
• The amount of investor interest in the asset

The optimal trading indicators during the weekend

• The use of simple indicator or chart trading systems
• Working with the leading cryptocurrencies
• Taking long-term trading positions
• Classic risk management

In conclusion, remember to follow the universal money management guidelines that create safe conditions for trading on the financial market over any period:

• In order to decrease the possibility of losing capital with minimal funds in your account, use trading contracts that have a low threshold for entrance
• When trading on large investment accounts, it is recommended that no more than 5% of your total funds are invested in any one trading position.

By following these recommendations as to when the optimal time for trading on the financial market is for you and the corresponding effective strategies, base assets and risk management methods for each, you can generate impressive results on the financial market.

TRADE CRYPTOCURRENCY

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Learn how the factor of time affects trading and investing
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