Tips on Trading the New York Session

Here are some tips you should know about trading during the New York session:

• There is high liquidity during the morning, as it overlaps with the European session.
• Most economic reports are released near the start of the New York session. Remember, about 85% of all trades involve the dollar, so whenever big-time U.S. economic data is released, it has the potential to move the markets.
• Once European markets close shop, liquidity, and volatility tend to die down during the afternoon U.S. session.
• There is very little movement Friday afternoon, as Asian traders are out singing in karaoke bars while European traders head off to the pub to watch the soccer match.
• Also on Fridays, there is the chance of reversals in the second half of the session, as U.S. traders close their positions ahead of the weekend, in order to limit exposure to any weekend news.