The market session is important to determine profitability. By using this time, a person can make a fortune. This is also when major players invest which increases liquidity and more people can get a reward. There is a misconception among investors who believe the industry will give rewards to any individual who places an order. This is a zero-sum profession where every dollar is pulled out from the account of a participant. Forex has a money hut with the deposit invested by the community, this gives the money to traders.
Many consider the opening and closing period as dangerous as the industry has only started. The chances of getting volatile movements are high. We cannot predict how the price trends are going to be initially. Professionals wait for consistency which is found generally afterward. The closing time is often consistent as news is not released. This reduces the fluctuations which encourage people to invest. Reduced movement also implies the prices will not change as expected which can be risky.
Opening and closure session is the most confusing decision in Forex. Many controversies are surrounding this concept. While a group may argue, you will find convincing explanations to invest. In this article, we are not going to take sides with either community. We will explain the merits and the drawbacks only. Deciding if the investment would be profitable depends on the traders.
Opening time can be volatile but also offers the opportunity
Volatility is synonymous with profit. If the price of the pair remains unchanged, participants would lose money. It is required that the economy fluctuates which will give chance to make money. In the starting, all the news is waiting and people are holding their orders. This intense period can affect the market beyond expectation. Think a major company went bankrupt which has improved the economy of many countries. When this information reaches the market, impacts will be observed instantly.
Most of the experienced traders at Saxo capital markets expect the trend to go up or down depending on future decisions. Traders can take advantage of this fluctuation by placing their orders. For short-term investors, this is a golden chance. They only need to stay before the investment grows. Considering this perspective, trading when the market opens is profitable. The higher volatility helps the community to achieve goals without waiting for the trend to move. In the long run, this can become an important part of their career.
Every profession has risks. When the opening time appears, an intense environment is build up. Even professionals cannot anticipate where the trend will go. If you have guessed the direction wrong, the fund cannot be lost. Most people set a stop-loss but failure occurs in the starting as the sector has not yet shown movements. Based on this understanding, refraining is the best solution.
Closing time is not an exception
From the discourse, we expect you have got an idea of how the sector evolves. The patterns get consistent over time but what about at the last time? The session is going to be completed which implies investors will not get major fluctuations. This result gives both opportunity and risks. Losing money as the price does not change and winning because there were fluctuations. While the opening is popular, the closing period is shunned by the community. Even with the best methods, people fail to identify profitable patterns. Even if there is information, it would not affect as the session is about to close.
It is impossible to define the opportunities in Forex. A person needs to understand and analyze the chances based on the fundamental concepts. Choosing an intense strategy can be risky while a moderate solution can be profitable. Make decisions after analyzing and knowing the situations. Never trust your emotions or gut feelings in the investment business.