Trade Stock Indices

Setting A Indices Schedule and a Written Example

An index market spans the globe. Its worldwide reach keeps it open almost all week. Index traders enjoy flexibility in pick times to trade. Still, not every hour suits entering deals.

Traders should establish a trading timetable that aligns with the periods of highest activity for Indices, as these represent optimal times for maximizing potential gains.

The USA and London sessions are the busiest times. These three sessions have the most trading from around the world each day, but even though Asia is one of these sessions, it's better not to trade then.

There are also overlaps in the between the three market sessions, where 2 sessions are open the same time, these over-laps are the most active trading periods. These over-laps provide a great opportunity to trade in multiple markets at once and maximize your potential profits.

The best overlap is what takes place between the US & London markets. This is the time when activity is at its highest & there are lots of chances to trade.

The Asia session is the least busy of the 3 main market sessions. All trading things move slowly or stay still during this market session. It's not a good time for the stock market: it's best to rest.

Because the trading day lasts all day & night & it is not possible to stay up all night long, traders should set up a workable schedule. By gaining an understanding of these hours, trader can set appropriate trading hours to increase the chances of maximizing profits.

When setting up a schedule, it should accomplish the following goals:

1. Familiarize yourself with various sessions. These are: New York session, the London session, the Tokyo session.

London Session - 3 A.M. - 12 P.M. EST ( 8:00 GMT to 1700 GMT. )

New York Session - 8 A.M. - 5 P.M. EST (1300 GMT to 2200 GMT.)

Tokyo Market Session - 7 P.M. - 4 A.M. EST (00:00 GMT to 9:00 GMT.)

2. Trade during this time when prices are most active.

3. Plan a workable schedule. So as to keep a balance between your trading time & time to get enough rest and sleep. Best time is between 3 a.m. To 5 p.m. EST

Indices Market Sessions and Market Overlaps - Indices Schedule

When both the USA and UK markets are open, prices usually go up or down and move a lot in one way. As someone who looks at the market, this is when technical indicators give good signals to catch trends.

Online traders discover it simpler to realize profits when gold prices are exhibiting strong trends and rapid movement.

But, at other times, like during the Asian session, prices tend to stay within a range, and traders who use indicators may find it hard to make profits because the indicators are more likely to give false signals. It can be hard to make money when prices are moving within a limited range.

It is 10 times easier to make money when the stock trading market is moving up or moving down than it's to make money when it's ranging.

At the best times to place trade orders - 800 GMT and 1800 GMT - the stock values will likely rise or fall in one direction: at other times, such as during the Asia Session, the stock prices may move up and down.

  • London session 08:00 GMT -16:00 GMT.
  • USA session 13:00 GMT - 22:00 GMT.
  • Asian session is a relatively slow for all instruments & not suitable at all.

Basically your trade plan should target 800 GMT and 1800 GMT as the time that you trade instruments.

Explanation of a Written Schedule on a Trading Plan

The example explained & shown below shows how to specify your routine and time of day to watch the stock market. This will form the essence of your market schedule. The time-frame that you use will also be specified & mostly it will depend on what type of trader you are. The time set for this trading example is during the day when the UK & USAUS sessions are open such as shown on the stock example shown below.

Example of a Written Indices Schedule - Stock Index Schedule

Written Indices Schedule - Indices Plan Sections

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