Setting A Indices Schedule and a Written Example

Indices is a market that's global in nature. The global nature of the stock trading market means that it is open around the clock throughout the week. Indices traders therefore have a lot of flexibility when it comes to choosing when to trade. However, not all times are suitable for placing transactions.

Investors should set up a schedule based on the most active Indices hours which are the best hours to help maximize profits.

USA and London sessions are the most active times. These 3 sessions make up the largest volumes of transactions from across the world on a daily basis, although Asia is one of these three market sessions best not to trade during this particular session.

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

The best overlap is the one that occurs between the US and London markets. This is when the trading opportunities are the most active & more opportunities present themselves.

Asia session is the least active of the 3 major market sessions. All trading instruments move slowly or consolidate at a single point throughout the market session. This isn't a good time to be in the stock trading market - this is the best time to take a break.

Because the trading day lasts all day & night and 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 hours to increase 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 market 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 and time to get adequate rest. Best time is between 3a.m. To 5p.m. EST

Indices Market Sessions and Market Overlaps - Indices Schedule

When the USA and UK market sessions are both open prices will generally trend up or down and move a good number of pips in one direction. As a trading analyst, this time the indicators will provide good and profitable signals that catch the trend.

When the prices are trending and moving fast traders will find it much easier to make money.

On the other hand, during the other times for example the Asian session, the prices will be in a range movement and traders using indicators will have a hard time making profits as the trading indicators will generally tend to be more prone to whipsaws. One will find it difficult to make money in this range bound price action movements.

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

During the best times to open orders, i.e. 800 GMT & 1800 GMT the stock prices will trend in one direction, during other times like Asia Session, the stock prices likely to be Range Bound.

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 plan should target 800 GMT & 1800 GMT as the time that you trade instruments.

Example of a Schedule on a Plan

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

Example of a Written Indices Schedule - Stock Index Schedule

Written Indices Schedule - Indices Plan Sections

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Trade Stock Indices

Setting A Indices Schedule and a Written Example

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

Example of a Schedule on a Plan