When we trade in forex or crypto currency, the word session is something we always talk about. This session basically means a time frame.
We have several sessions in the forex market. That is Asian, London and New York. Although this Asian session is considered to be a single session, it is made up of the combination of Sydney and Tokyo sessions. I will post a note with this time period to make it easy to understand.
Now let's see what is special about this session. The most basic thing is that in a market session we can see a good amount of liquidity in the market. The main reason for this is that financial institutions, which are the big players in the market, enter the market to trade in these sessions. Through this we can take care of relatively significant movement.
Now one can think that we should trade even during a session. It's not like that. Some people's strategy is not session based. And this session doesn't matter much to them. This affects swing traders the most. Also, there are some day trading strategies that are not session based. Generally, if we develop such a strategy, we need to have considerable experience in the market.
Now then you ask why we need to trade in session. As I said basically, if you trade without a certain time frame like a session, you need a lot of psychological power. You have to stay with the market for a long time to develop it. That's why if you are a beginner and you don't have 3 years of experience in the market, practicing session trading will help you a lot to become a good profitable trader.
Owner: Nimithi
