How to Trade One Hour a Day in Forex and Make Money
Is it possible to trade one hour a day in Forex and make money
? Many people who want to trade Forex don't have the time to trade all day or even part of the day. So can you trade one hour a day and make money, perhaps enough money to live on?I think the answer is yes but the trader will need to learn a specific skill and they will have to be disciplined. As disciplined as a top-rated batter in baseball. First let me explain how one could learn to trade one hour.
To trade one hour, that hour would have to be special. I think most people would agree with that. Anyone who has some experience in Forex trading knows that all of the hours traded are not the same. Block off any 24 hour period on say the hourly chart and you will find a variety of bar lengths. The day before this article was written the Eurodollar moved over 180 pips. So the question is, which hour would a trader want to trade if he or she wanted to be successful.
Just by general observation most traders know that the most volatility occurs in the London trading session. The New York trading session can also be volatile. The Asian session can be volatile but typically it has a tighter range of pips so it is more difficult to pinpoint a best time to trade but it could be done, and has.
But volatility is not momentum. That is the first thing to remember. Just because price jumps up or down or jumps up and down does not mean we have momentum, it means we have volatility. What we want is an hour when there is force in the market but it is not spinning like a whirlpool. A whirlpool will trap you in it and the results will turn out bad. We want an hour that prices come out of the whirlpool and begin to flow down the river.
Can we find that hour? This hour would be more like getting up each day and going to the bus stop where you can rely on the bus to be there. You get on the bus and it takes you to work. The hour we want is an hour where interest in the currency pair we are trading, goes in the direction we want it to go with force.
To do that we need to find that hour and we need to know our currency pair. (I have written about "Becoming Friends with Your Currency Pair" here at EzinesArticles.)
Statistical studies of momentum of RSI can and have defined the hours that momentum is most likely to occur.
Now where does discipline come in? Like a batter at the plate you as a trader will get pitches. A batter gets three strikes before he is out but some batters get many more than 3 pitches. The key is that they don't swing at every pitch even though they might want to. They have learned to restrain themselves, to wait for the best pitch, the pitch that they know they can hit.
The Forex trader must do the same. By only taking the trades that set up best for momentum at the proper hour, the trader avoids many losses that he or she would then have to make up for. Don't be anxious about taking a trade, another bus will come in the morning.
How to Trade One Hour a Day in Forex and Make Money
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