(Forex) Forex Investing at the Right Time - The 10 am Rule and How it works

Sometimes it`s wise not to be the early bird when stock investing, instead wait and see what the day will bring before you take action. The 10 A.M. rule is a great example of this concept, and is an example that protects your capital. You want to invest in a stock for any reason. It could be a trend, or you might think that a hot sector is going to participate in a rally.

It is sometimes better to wait until the morning before investing in forex. You can then see how the day unfolds. The 10 A.M. rule is a great example of this concept, and is an example that protects your capital. You want to purchase a forex stock for any reason, fxcm.my/ whether it is a trend-play or you believe a hot sector will be part of a rally. The gap down is a good time to buy, but you know the market will be in a rally and the forex stock will gap up instead. But buying the gap up is a bad trade. Now what do you do?

The 10 A.M. Rule is used to determine the best time for investing in forex stocks. If the forex stock 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 has followed the forex market knows that the stock price will often spike up in the early morning hours, before suddenly falling and reversing into negative territory. You can avoid this risk by following the rule of 10 A.M. If the forex stock does make it to a new high after 10 A.M., there is still trader interest in the forex stock, and it stands a good chance of gaining momentum and heading even higher.

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. It reaches $166.50 at 2 P.M. The forex stock is now safe to buy, using the 10 A.M. rule.

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. In a downmarket, this also applies to forex stocks that open at lower prices than they closed the day before. In this situation, you should not short a forex stock that has gapped down unless and until it makes a new low for the day after 10 A.M.

The 10 A.M. Rule will ensure that you never chase and buy a foreign stock when the chances of making a successful trade are low. Trading is all about probabilities. The more stock trading forex trades that you do with a high chance of success, you'll be more successful. 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.