REASONS not to trade 1st hour of session
If you are either a scalper trader and/or a day trading, the 1st hour of new session is never a place to trade: Here are some reasons:
1) Low Liquidity
2) Low Volume
3) Very High spread widening ( can be 15 to 20 pips) from broker
4) Very Large hourly candlesticks (example: 88 pip large clearing doji candlestick) happens for broker to take both buyer and seller positions out.
Note: 1st hour of session is during Sydney session, then afterwards Tokyo session starts. Increasing liquidity and volume starts end of Tokyo.
Part of your plan should be:
Pairs to trade
When to trade
What setups to trade
Trading edge & Strategy
Do not be greedy especially during the financial craziness going on in most countries around the world, just get a piece of PIP PIE in a trade if you are either a scalper or day trading. Use risk management and commonsense- this is no place to gamble with your money- use probabilities of success of setups.
1) Low Liquidity
2) Low Volume
3) Very High spread widening ( can be 15 to 20 pips) from broker
4) Very Large hourly candlesticks (example: 88 pip large clearing doji candlestick) happens for broker to take both buyer and seller positions out.
Note: 1st hour of session is during Sydney session, then afterwards Tokyo session starts. Increasing liquidity and volume starts end of Tokyo.
Part of your plan should be:
Pairs to trade
When to trade
What setups to trade
Trading edge & Strategy
Do not be greedy especially during the financial craziness going on in most countries around the world, just get a piece of PIP PIE in a trade if you are either a scalper or day trading. Use risk management and commonsense- this is no place to gamble with your money- use probabilities of success of setups.