Optimal Timing for Forex Trading for Vietnamese Investors

To optimize trading performance, you need to understand the daily and weekly forex trading hours. This article will help you identify the exact times when you should and shouldn’t trade.

The foreign exchange market operates continuously 24 hours a day, but this does not mean every hour is suitable for trading. The reason is simple: there are periods of high market activity with significant price volatility, and there are quieter periods with fewer profit opportunities. Understanding forex trading hours will help you find the golden moments to enter trades.

The Four Main Trading Sessions of the World

The forex market is divided into four main trading sessions:

• New York (North America) Session - The strongest session with high trading volume
• London (Europe) Session - A session with high liquidity
• Tokyo (Asia) Session - The session that starts the trading day
• Sydney (Australia) Session - The session that closes the trading week

Although there are four sessions, experts often apply the “3 Trading Session System” by focusing on three main sessions: Asia (Tokyo), Europe (London), and North America (New York). The reason is that these three sessions have greater price fluctuations and better profit opportunities.

Interestingly, the four largest trading centers—London, New York, Singapore, and Hong Kong—account for up to 75% of global forex revenue.

Opening and Closing Times According to Vietnam Time

To help you follow easily, here is a detailed schedule of opening and closing times for each session:

Sydney Session:

• Summer: 5h - 14h (Vietnam Time)
• Winter: 4h - 13h (Vietnam Time)

Tokyo Session:

• Both seasons: 6h - 15h (Vietnam Time)

London Session:

• Summer: 14h - 23h (Vietnam Time)
• Winter: 15h - 24h (Vietnam Time)

New York Session:

• Summer: 19h - 4h the next morning (Vietnam Time)
• Winter: 20h - 5h the next morning (Vietnam Time)

Note that these times are based on local working hours, typically starting from 7-9 AM. Vietnam does not observe daylight saving time, but countries like the US, UK, and Australia do change their clocks in October/November and April, which will affect forex trading hours.

Overlapping Trading Periods - Golden Opportunities

Between trading sessions, there are periods when two sessions open simultaneously. These are the times with the largest price movements and the best profit opportunities.

###London And New York Overlap (19h - 23h Vietnam Time)

This is when the two largest trading sessions in the world operate at the same time. During this period, currency pairs involving USD and EUR (the two strongest currencies in the world) are traded very actively.

Since most traders worldwide are available during this time, trading volume surges, creating strong and clear price movements. Therefore, the time from 19h to 23h is the most optimal time for forex trading for most Vietnamese investors.

###Sydney And Tokyo Overlap (6h Morning - 13h Afternoon Vietnam Time)

This period is the intersection of the Asian and Australian sessions. Although it does not generate as much volatility as the London-New York session, there are still attractive trading opportunities.

Especially, currency pairs containing the Japanese Yen (JPY) such as EUR/JPY and GBP/JPY tend to have the highest volatility during this time. If you are interested in Asian currency pairs, this is a suitable choice.

###Tokyo And London Overlap (13h - 14h Vietnam Time)

The overlapping time of Tokyo and London lasts only 1 hour, and it is the end of the Asian session and the beginning of the European session, so trading activity is limited. EUR/JPY and GBP/JPY remain the main choices during this short period.

The Most Effective Trading Days of the Week

In addition to trading hours, you should also pay attention to the days of the week. Not every day is suitable for trading.

Monday: The market is usually quiet, especially when there is no major economic news. The average pip movement is only about 50% of mid-week days.

Tuesday to Thursday: These are the best trading days with high price volatility and high profit opportunities.

Friday: The market is lively in the first half of the morning but becomes quiet in the afternoon. Most traders close their positions to avoid risks from unfavorable news that may occur over the weekend.

Conclusion

To trade forex effectively, you need to combine two factors: choose the appropriate forex trading hours (preferably from 19h-23h) and select days with significant volatility (from Tuesday to Thursday). By mastering these rules, you will increase your chances of earning stable profits from forex trading.