It is impossible to become a successful trader if you are not familiar with the stock market trading schedule. Inasmuch as only when you consider trading schedule you can use your time and resources effectively.
To provide an efficient trading activity it is necessary to trade on different stock exchanges, which could have identical working hours. Though, because of the time zone difference, you can trade continuously 24/7. This is especially convenient for those who want to establish automated trading.
To define stock market trading hours it is necessary to pay attention to the trading sessions. When it comes to the global stock market four trading sessions are divided:
- Asian
- European
- American
- Pacific
Asian Session
The Asian market of stocks opens first, so, the session is the first trading session for all traders all around the world. In the period of the Asian session, you can trade stocks quoted on HKSE (Hong Kong), TSE (Tokyo), and SGX (Singapore).
The most popular traded securities are stocks of Japanese cars and electronics producers including Toyota, Honda, Canon, Sony, etc. The most demanded currencies during the session are Japanese Yen and Australian Dollar.
European Session
At 08:00 CET the session starts in Frankfurt and at 09:00 CET the market opens in London. Usually, the European session is featured by the active price movement at the beginning of the trading period and after the lunch break.
The Forex market provides the main currency pairs, while the stock market offers prominent assets like the DAX30 index. The session is characterized by high volatility.
American Session
The beginning of the session occurs during the period when American and European traders are active on the market. So, this period has great impact on the Forex platform. That is why traders on both currency and stock markets call the American session the most active one.
The session is appropriate for those who want to invest in stocks quoted on NASDAQ and NYSE (Apple, Amazon, and other famous companies).
Pacific Session
This trading period is the only one, which overlaps all other sessions because it opens the market at 06:00 PM UTC in Wellington and then at 08:00 PM UTC it starts in Sydney. The session is featured by the mild volatility.
Inasmuch as the stock trading is not always provided manually due to the inconvenience it is possible to use the algo trading stocks. It is useful to create an algorithm using special software and codes to provide a mechanism, which can open and close stock trades. The opening and closing is provided in accordance with previously prepared and established standards.
So, when the established parameters are met, the mechanism can trade on behalf of the trader. Algorithmic stock trading allows traders not to monitor the current market conditions around the clock. Such a method of trading is appropriate for those who want to provide long-term investing. What is more, with the algorithmic trading technique buying and selling stocks becomes more comfortable and less tense.