The Forex market plays the music almost 24/7, except after New York market closed on every Friday until Monday morning before Sydney market open. The music play wild on certain currencies following the time frame. Since most of the major pairs rely on USD, the music play the wildest during the London-New York overlapping session.
To become a successful trader, you need to find the right time frame that suit you. I spend most of my time in Kuala Lumpur, Malaysia. Occasionally I travel around the world. I normally following the Tokyo-London-New York session which is from GMT 0000-GMT 1200. Yes, during this hours, the forex market is like a wild party, the pairs (music) jumping up and down. If you are an amateur trader and cannot catch up the tune during this session, chances for you to lose money is huge.
Forex is a very unique party and full of different participants with all kind of perception. Some participants dance a for 5 minutes and leave the party. Some participants tend to following the music whole sessions. While the big boys stand on the stage become the deejay.
Some readers still ask me who are the big boys? Let me explain again, they are institutional players, banks, hedge fund managers and people who can influence the market. Most of them will set up the strategy to earn money as much and quick as possible. They have good friends (politicians and policy makers) and information tend to flow to them before it release out to the market. They tend to play different type of music to attract participants to the dancing floor and will stop it once they think the time is right. They will provide all type of liquid and create the illusion to the participants. Emotion will run wild once you see the illusion. To beat them, impossible! The only way to make money in the market, is to join them, listen what type of music they are going to play and dance with the market!
*I am writing this article at Starbucks cafe, (a place to prevent me from fall into sleep while watching people dancing on the floor).
