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As The World Pip Turns
 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 3:00PM 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 8:00PM in London and British traders have long since closed up shop and
gone home. It's 9:00PM 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 7:00PM 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 1:00AM 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 6:00AM and British traders are just rising. Swiss traders are
already on the bus to work.
Six hours later it's 7:00AM 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).
8:00AM New York opens, London back from lunch, Europe goes to lunch
9:00AM European brokers back from lunch
11:00AM London closes, brokers head home
12:00PM Europe closes, New York goes to lunch
1:00PM New York back from lunch
2:00PM Asian traders sawing wood
3:00PM Asia closes, traders head home
4:00PM New York closes, traders head home
5:00PM Asian traders arise
6:00PM Asian traders en route to the office
7:00PM Japan/Australia opens
10:00PM London traders sawing wood
11:00PM Asia goes to lunch, European traders sawing wood
12:00AM Asia back from lunch
1:00AM European traders arise to a new tradnig day.
2:00AM London traders arise. European traders en route to work.
3:00AM London open, Asia closes, European traders en route to work, New Yorkers
sawing wood
4:00AM Europe opens
6:00AM New York traders arise to a new trading day
7:00AM New York traders en route to work, London goes to lunch
8:00AM New York opens, London back from lunch, Europe goes to lunch
9:00AM European traders back from lunch
11:00AM London closes, traders head home
12:00PM Europe closes, New York goes to lunch
1:00PM New York back from lunch
2:00PM Asian traders sawing wood
3:00PM Asia closes, traders head home
4:00PM New York closes, traders head home
5:00PM Asian traders arise
6:00PM Asian traders en route to the office
7:00PM Japan/Australia opens
10:00PM London traders sawing wood
11:00PM Asia goes to lunch, European traders sawing wood
12:00AM Asia back from lunch
1:00AM London traders arise
2:00AM London traders en route to work, European traders arise
3:00AM London open, Asia closes, European traders en route to work, New Yorkers
sawing wood
4:00AM Europe opens
6:00AM New York traders arise to a new trading day
7:00AM New York traders en route to work, London goes to lunch
8:00AM New York opens, London back from lunch, Europe goes to lunch
... and on and on it goes, "As The Pip Turns" |
