I'm a reasonably experienced trader looking to try my luck in the currencies. I am based in Europe, but working the US hours - to combine with my other trades would be better. Do the London hours provide better trading opportunities and flow or is it negligible? Any advice welcomed, thanks.
I have to agree with the other post.... London is the best for liquidity without question. When I was trading Interbank NY was already drying up and now its completely done. The only liquidity that exists in NY is the crossover from the London shift. The only exception to this is at the merc where you will find decent size.
When I started out a few years back, NY session used to be pretty decent in terms of flow and volatility. But nowaday, it's almost as bad (and sometime even WORSE) than Asian session!:eek: Even news couldn't move pips like they used to. I'm wondering if it's bcoz of the proliferation of options plays
The only thing that use to keep NY flowing was Mutual Funds hedging international positions... and even that was drying up at the time ..... took all of about 6 months for that flow to go away.....
I would agree to some extent, if you are just beginning, liquidity will more than likely not be a concern, that is, unless you plan to trade really big. The London hours are enhanced with the US morning liquidity and adding to the mix is the fact that 95% of all US economic releases are in the London hours overlap. The hyperactivity may lend to be more confusing and harmful at the beginning. Depending on your trading strategy, one may be better than the other. Looking at it from an opportunity perspective, you may have more time in the London morning to focus on the FX and then go to work in the US hours. It make sfor a long day but who cares if you are tired. Just think of all the money you might have! Sorry to not answer your question directly, but you have to try it to see if it works. Happy Hunting.
London hours offer much better intraday trading opportunities, at least for my setups. Especially if you're focused on sterling-dollar and crosses. In terms of share of the turnover, London is, of course, comfortably ahead of both New York and Tokyo, although that's really not important to most independent traders. Wood474, maybe we should trade places for a while, hah. Been trading the (brutal) European hours from across the pond for nearly 3 years now. However, if you're already active during the US hours, i.e., the tail end of the daily forex cycle, you may still find adequate volatility to work with. Obviously, it'll depend on your trading style, time frame and pairs.