The best time to trade forex in Africa

Becoming a trader in the foreign exchange, or forex, market is straightforward. There are countless online resources you can use to create an account and start trading.

When you use platforms like OANDA, you can even trade on margin. That is why so many people are drawn to forex when they first show an interest in trading.

If you are living in Africa or visiting there for a few months, you may want to know the best times to trade forex.

Below is a guide that explains the ideal times and days that you should be trading forex when living in Africa.

Trading in Africa

The beauty of the forex market is that how often you can trade bears no relation to where you live or are visiting. You can trade online through your account on various platforms, and all you need is a working internet connection.

One issue you must incorporate into your routine when you are in Africa, is that you may not be in sync with major markets in terms of time zones. Whether you are in North Africa, Central Africa, South Africa, or another part of the continent, you may have to trade at odd times to make the most money.

Why Do Trade Times Matter?

If you are a casual forex trader who wants to make a few trades a day, you need not be too concerned with timing. You can log into your account at any time, make the trades you desire, and move on. 

Those who are more serious about their forex investment journey, and want to turn this into a part-time or full-time job, will care about time zones. There are specific periods when the forex market has the greatest volatility, and those are the times you want to trade.

Experts often state that London markets for forex are the most volatile, which means you want to trade from 8 am GMT to 1 pm GMT. These hours will give you the most significant advantage if you are pushing through a lot of trades, as currency values are constantly moving up and down.

Understand Your Trading Times

If you live in South Africa, you will want to trade from 10 am to 3 pm, as those are the corresponding times to the GMT timings mentioned above. Those who live in other parts of Africa can perform the time zone calculation based on where they reside.

Another time that you may find interesting is when the New York markets open, as the American forex market is also reasonably volatile. The NYSE opens around 7 pm South Africa time or 5 pm GMT.

If you are an avid trader, you can then put in an evening or night session for a few hours. Sometimes you may want to alternate, trading the London market on Mondays, NY on Tuesdays, and so on.

Trade with a Strategy in Mind

The volatility of the forex market is an advantage for new traders, as you can make a lot of small trades to see how you are performing. It will help if you work on having a strategy for each session and in general. Understand why you are making specific trades instead of simply following how the market is trending.

As you become more aware of why certain events happen, and when they occur, you will be well-versed in predicting the forex market trends. Then you can make real money, as you are ahead of the curve when you execute trades.

Trade Carefully and Methodically

A reason why so many people show an interest in the forex market is because of the ease of access. You can sign up on an online platform, add money to your account, and start trading within minutes.

Traders can even access margin to make trades with a higher value than they hold in their accounts. What you must not do, however, is take unnecessary risks with your trades.

By learning about the ideal times to trade in Africa, you will be up when the market is most active each day. You must always think before you push through a trade, and never make a trade with a value higher than you are willing to lose.