The Best Time to Trade

As traders, we have all wondered at least once when the best time to trade futures or the crypto market is. Although the answer might initially seem simple, it’s important to understand all the factors usually considered when deciding the best time to trade.

The futures market is accessible almost any time, while the crypto markets are available all year round. From this perspective, we might think that trading depends on our availability. However, in practice, we will encounter factors like market openings and metrics like volume, which are crucial in choosing a good time.

The Importance of Volume in Trading

Understanding volume and its impact on a trading session will allow us to better decide when to trade.

Volume represents the number of transactions made during a specific period and impacts a trading session across the markets. We will know when market participation and their interest increase or decrease.

The futures market, where we found assets like E-mini Nasdaq100 (NQ) and E-mini S&P500 (ES), is known for its significant daily volume. Although the exact number of participants is difficult to determine, we acknowledge how diversified they are.

According to CME reports, the trading volume on the ES can even exceed $100 billion, highlighting the significant activity from retail and institutional traders.

Key Trading Sessions: NYSE, London, Asia

The opening of global trading markets, such as the NYSE, London, and Asia, will greatly increase the volume of trading in the futures market, bringing fresh trading setups across all markets.

Higher volume generally brings more market activity, increasing liquidity and making it easier to find and enter trading setups.

Pro Tip: The Futures Market is open 23 hours a day. It opens every Sunday at 22:00 UTC, closes each day at 21:00 UTC and opens again at 22:00 UTC.

The opening trading session hours help time the trades effectively:

• New York Session (NYSE): The NYSE opening (at 9:30 AM EST) often brings the highest trading volume of the day. This period usually experiences a significant increase in volatility, making it attractive for scalp and day traders looking for new opportunities.
• London Session: The London session begins a few hours earlier (at 8:00 AM GMT) and is also a time of high trading activity, especially in forex markets. Many traders find this session ideal, as it overlaps with the New York session, creating even more volatility.
• Asia Session: Though this session (opening at 9:00 AM JST) generally has a lower volume than New York and London, it still offers good trading activity, particularly for futures tied to Asian markets. This session can be suitable for those who prefer less volatility and those who live in or near Asian time zones.

The Impact of NYSE on Cryptocurrencies

Cryptocurrency markets operate differently than traditional markets. Unlike the futures market, which closes on weekends, Bitcoin (and Altcoins) remains open 24/7 throughout the year. This access makes crypto attractive for traders who value flexibility but also introduces a few challenges for new traders.

While the crypto market is always open, it’s not completely isolated. Bitcoin often correlates with traditional markets, particularly the ES. This correlation is most evident during the NYSE’s opening and closing hours.

Since Bitcoin can now be traded on regulated markets like the CME, it has become increasingly attractive to institutional traders as a speculative asset. This growing interest means that the correlation between traditional markets and Bitcoin will likely have an even greater impact on its price action moving forward.

Whether you are trading Futures or Bitcoin, timing matters.

Balancing trading with healthy routines

Low-volume periods often lead to slower price movements and fewer trading opportunities. This can be a frustrating reality, but it also presents a moment to rethink our time allocation. During these quieter phases, we should weigh the value of time spent staring at charts against the importance of maintaining a balanced daily routine.

Time off from trading can definitely help your growth. Reduced market activity can limit trading opportunities, allowing us to create a proactive action plan. This plan includes embracing downtime as a chance to recharge, refocus, and engage in activities that nurture our minds and body. Whether spending quality time with loved ones, pursuing hobbies, or simply walking outdoors, valuing free time can enhance our performance when returning to the markets.

Remember, successful trading is about striking a balance that supports mental and emotional well-being. We must aim to use these low-volume periods as a reminder to step back and invest in ourselves beyond the charts.

Conclusions

The best time to trade is more than identifying high-volume periods or active market sessions. While the futures market offers significant opportunities during the NYSE, London, and Asia sessions, and Bitcoin provides 24/7 access, success in trading requires more than availability. It’s about aligning the market dynamic and strategies with our personal routines.

Focusing on the NYSE session often brings the highest potential for liquidity and volatility, while London and Asia sessions provide alternative opportunities tailored to different trading styles.

As institutional interest grows, we can benefit from paying attention to the correlation between Bitcoin and traditional markets, particularly the NYSE’s influence on Bitcoin’s price action.

By understanding the market rhythms and valuing free time, we can create a sustainable approach that supports our goals and personal growth.