Astronomers tell us that the Earth spin on its axis at 776 miles an
hour as it orbits the sun at 67,000 miles an hour. Meanwhile the sun
is orbiting the center of the Milky Way at 500,000 miles an hour,
while our entire galaxy moves through space at more than 1.2 million
miles an hour. Getting dizzy?
A recent poll asked Americans why we have a 24-hour day. Nearly 50%
answered that the reason is because the Earth goes around the Sun
once every 24 hours. Uh, if that were actually true the Earth would
have careened off into space billions of years ago at hypersonic
speed and people like these would never have evolved.
Let's throw a dart at the clock and see what's happening around the
world as testosterone-powered Forex traders joust for pips and try
to rob the other guy of his daily bread. Remember, this is what is
called a 'zero sum' game. For every winner, there is a loser. And
better me than you!
It's 3:00p in New York City and traders already have one foot out
the door. This is the start of the "twilight zone" for Big Apple
traders, when the Forex casino is generally quieting down and you
can expect stubby candles (reminds us of a country & western Forex
trader we once met.)
It's 8:00p in London and British traders have long since closed up
shop and gone home. It's 9:00p in Europe where traders who must
rise early are already hitting the sack and counting pips to fall
asleep. In the Pacific rim it's still 4 hours before the Japanese
and Australian markets open and Asian traders are just turning off
their alarm clocks.
Four hours later it's midnight in England and the Queen is snoring,
but it's only 7:00p in Gotham City as New York traders arrive home
at their penthouses in the Hamptons and Asian traders have just
begun their work day (if you can call Forex trading work.)
At 1:00a New Yorkers are sawing wood and it's already 6 hours into
the Japanese/Australian day as Asian traders are just returning from
lunch, while in London it's 6:00a and British traders are just
rising. Swiss traders are already on the bus to work.
Six hours later it's 7:00a in New York as Big Apple traders get on
the subway to downtown, while in England it's 12:00 Noon as Limey
traders head to the pub (there's one on every corner) for a pint to
wash down their fish and chips.
By 12:00 Noon in New York, Big Apple traders are heading to the deli
for blintzes and cream cheese as London traders turn off the office
lights and get on the bus back home. In Asia it's already midnight
and Japanese traders are counting pips to try to get to sleep. See a
pattern developing here?
Once every 24 hours (well, close enough) the Earth rotates on its
axis. With each passing hour one financial market swings into the
light of a new dawn as another retires into darkness. Which is why a
good Forex trader needs to be aware of exactly where the currency
casino is open at any given hour of the day.
For example, on Friday afternoons top Manhattan traders leave work
early and head for the Hamptons leaving subordinates to play with
the remaining pips, resulting in desultory action prior to the
Friday close. Don't ever forget to take these circadian cycles into
account in your own trading.
But I digress! Back to the Forex. Review the following list of
opening and closing times until you have them memorized, and
envision yourself collecting pips around the clock. All times shown
are New York time (-5 MT.)
|
| 8am |
|
New York opens, London
back from lunch, Europe goes to lunch |
| 9am |
|
European brokers back from
lunch |
| 11am |
|
London closes, brokers
head home |
| 12pm |
|
Europe closes, New York
goes to lunch |
| 1pm |
|
New York back from lunch |
| 2pm |
|
Asian traders sawing wood
|
| 3pm |
|
Asia closes, traders head
home |
| 4pm |
|
New York closes, traders
head home |
| 5pm |
|
Asian traders arise |
| 6pm |
|
Asian traders en route to
the office
|
| 7pm |
|
Japan/Australia opens |
| 10pm |
|
London traders sawing wood |
| 11pm |
|
Asia goes to lunch,
European traders sawing wood |
| 12am |
|
Asia back from lunch |
| 1am |
|
European traders arise to
a new trading day |
| 2am |
|
London traders arise.
European traders en route to work |
| 3am |
|
London open, Asia closes,
European traders en route to work, New Yorkers sawing wood |
| 4am |
|
Europe opens |
| 6am |
|
New York traders arise to
a new trading day |
| 7am |
|
New York traders en route
to work, London goes to lunch |
| 8am |
|
New York opens, London
back from lunch, Europe goes to lunch |
| 9am |
|
European traders back from
lunch |
| 11am |
|
London closes, traders
head home |
| 12pm |
|
Europe closes, New York
goes to lunch |
| 1pm |
|
New York back from lunch |
| 2pm |
|
Asian traders sawing wood |
| 3pm |
|
Asia closes, traders head
home |
| 4pm |
|
New York closes, traders
head home |
| 5pm |
|
Asian traders arise |
| 6pm |
|
Asian traders en route to
the office |
| 7pm |
|
Japan/Australia opens |
| 10pm |
|
London traders sawing wood |
| 11pm |
|
Asia goes to lunch,
European traders sawing wood |
| 12am |
|
Asia back from lunch |
| 1am |
|
London traders arise |
| 2am |
|
London traders en route to
work, European traders arise |
| 3am |
|
London open, Asia closes,
European traders en route to work, New Yorkers sawing wood |
| 4am |
|
Europe opens |
| 6am |
|
New York traders arise to
a new trading day |
| 7am |
|
New York traders en route
to work, London goes to lunch |
| 8am |
|
New York opens, London
back from lunch, Europe goes to lunch |
... and on and on it goes, "As The Pip Turns."
|
