Trade during peak market hours for liquidity, but also be aware of volatility risk.
what do you think?
Yes correct. I am totally agree with this.
For traders to make any money, price needs to move, and we need volatility for that to happen. So it’s a good thing that we have some volatility in this case.
What’s not good is if you try to enter a position around the news release (around 10 minutes before/after news). It’s a gambling mindset, spreads get widen. more often than not, it won’t be in your favor.
Trading during peak market hours can have downsides too. For instance there is a lot of noise on the charts since market makers try to move the price in certain directions. In this case your stop losses can be in jeopardy.
Plus peak market hours usually have a lot of intraday financial events and it’s not recommended to trade during the release of such events and news.
So everyone should define the best trading time suitable specifically for him.