As you already know, most of the market across the financial world are opened 24 hours a day, 5 days a week so theoretically you can trade binary options whenever you want. However, statistically speaking, there are some periods during the day when trading strategies perform better. If you are at the beginning with binary options trading, you need to understand that placing trades all day long and expecting to make a ton of money isn’t exactly the right way to approach trading.
London Session and New York Session
The City of London is currently the world financial center and because of that, most of the financial transactions are done during the London trading session. Why is that important? Because liquidity is very high during this periods and statistically speaking, technical strategies, no matter which one you choose, tend to perform better in high liquid environments. Especially when you trade around the London Open (around 06-07 am GMT) or New York Open (around 01:00 pm GMT) you have a much greater probability of gunning winning trades. By making a schedule and trading only in this periods of time you will manage to avoid most of the false signals that your strategy can generate.
Also, it is very important that you stick to liquid US stocks, US indexes, European liquid stocks and indexes and also, when it comes to forex, the pairs containing the euro and the US dollar are more suitable.
Since you want to trade binary options, you need to understand that you are a short-term trader who want to profit from small price movements. By placing binary options and by choosing the instruments we recommend you can avoid some of the pitfalls beginners usually encounter.
You can’t let emotions like greed affect your trading decisions and you must stick to this plan.
To conclude, no matter what strategy you choose, it most likely will perform better during the London or New York session, that’s why we recommend being actively involved in the markets during those periods of time.