Forex Investing At The Right Time: How the 10 AM Rule Works

1. It is sometimes better to wait until the morning before investing in stocks. This rule protects capital and can be a good example. Let`s say you want to buy a stock, for whatever reason; a trend play, or a market rally that you think a currently hot sector will participate in. It is sometimes better to wait until the morning before investing in forex. You can then see how the day unfolds. This rule protects your capital and can be a good example. You want to purchase a forex stock for any reason, whether it is a trend-play or you believe a hot sector will be part of a rally. You know that a great time to buy would be on a gap down, but the market is in rally mode and instead of gapping down, the forex stock gaps up. But buying the gap up is a bad trade. What do you do now? The 10 A.M. Rule is used to determine the best time for investing in forex stocks. If the forex stock www.fxcm- markets.com/insights/crypto-trading-everything-you-need-to-know-about-cryptocurrencies-in-malaysia/ makes a new high for the day after 10 A.M., then, and only then, should you trade the stock. You will, of course, use stops as you would with any other trade. Anyone who`s followed the market knows that a forex stock will often gap up early in the morning, only to suddenly sell off and reverse into negative territory. You can avoid this risk by following the rule of 10 A.M. The forex stock may reach a new high even after 10 A.M. There is still trader attention in the stock and it has a good shot of increasing momentum. Here is an example of the 10 A.M. rule on a gap up: A forex stock closes the day at $145. After hours, the company announces a two for one forex stock split. The forex stocks open the next day at $161. Before 10 A.M., it reaches $166. After 10 A.M., the price drops and does not reach $166 for two hours. At 2 P.M., it hits $166.50. Using the rule of 10 AM, it is safe to purchase forex stocks. You can use a variation of the rule 10 A.M. to watch for a sector that is hot in the morning, and then follow the forex stocks within the sector. If the forex stocks are still making new highs at midday, they stand a good chance of finishing the day near their ultimate highs for the day, and could be good trading opportunities. This also applies in a down market and to stocks in forex that gap down, opening at prices lower than where they closed the previous day. You should not short forex stocks that have gapped lower unless they make a new day's low after 10 A.M. Using the 10 A.M. rule ensures that you will never end up chasing and buying a forex stock when your chances of making a profitable trade are low. Trading is all about probabilities. The more forex stock investing trades you make with a high probability of success, the more successful you will be. The 10 A.M. Rule is an important addition to your forex trading plan. It will help you avoid costly mistakes, and increase the number of stock investments that are profitable.