Anyone managing sleep/work while trading the London Session from the US?
I live on the east coast of the US. I have been looking more in depth at the 5 minute EUR/USD charts recently (particularly looking at the differences in the London session and the New York session), and was interested in hearing from traders in the US (especially east coast) who prefer trading the London/Frankfurt open (around 2AM EST) for a few hours. The New York Session can sometimes be wild due to various news reports throughout the week, and the London Session offers great price action. Both offer great opportunities, but I've been considering trading the London Session in the future, only because I will be starting a new job soon which will prevent me from participating in any trading throughout the day. Plus, I will be in school all day starting in Fall 2016.
How do you guys manage sleep, trading the London Session, and being active at work/school (if you work and go to school)? Do you the think the crazy sleep schedule is worth it for you? How did you change your sleeping habits in order to stay awake and psychologically strong during the trading session?
Become profitable enough to move to Europe for the better timezone, seriously. Cost of living south of Spain can be very cheap, especially with dollar strength at the moment. Rent in some areas can be as low as 300 EUR per month for an apartment and 1000 EUR for a nice 4-5 bedroom house.
Short of that, be really good at understanding which market conditions are good to trade and worthwhile for the opportunity cost of sleep. Be active 1 hour before the London banks open, do you analysis, and then go back to sleep if trading conditions are not ideal. Also be up and active during data releases if managing open positions.
Do this long enough until you can afford to move. Or you can simply focus on US timezone based instruments like oil futures instead. But no doubt the big money is based in the European time zone for a reason when it comes to FX.
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Realistically, no trading is worth significant quality of life sacrifices such as crazy sleep schedules or being chained to a computer. A suitable compromise here when it comes to timezones is to either swing trade or move to the West coast where you'll get a 3 hour advantage. Alternatively you may choose to sacrifice some portion of "action" and instead wake up at 0500-0600ET to react to some of it.
It's kinda difficult to trade everything.
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Ah, moving is unfeasible at this point in my life. If I end up being profitable to the point where I don't need anything but a few hours from 2AM - 5AM or something in order to make a living, I don't mind that at all. I can even move later to the West Coast to gain that 3 hour advantage as was said in this thread.
I have been trying it out now - I just traded last night from 2AM to around 4AM when I closed my only trade of the night. I simply do not like the erratic movements of the New York session.
Well...erratic sleep schedules is definitely a young man's game.
I'd also say trading two sessions faces some serious diminishing returns from an attention span stand point. So maybe one and a half sessions is the best way to go. I would if you're good enough, waking up at say 5AM New York time should be enough to position for US opening from London close.
More hours should not be a substitute for proper trading. That should be more than enough market coverage, and then from there I'd suggest looking at whether or not you're well capitalized enough (usually a big issue in the retail space), then if the system works well enough, and then if you're trading with enough size on good trade opportunities (or over trading). I'd even go so far as to say if you're well capitalized enough, then just focusing on the US session with enough size should be sufficient on crude or S&P's. After all, that's what the ex-pit guys are doing anyways.
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Perhaps I was unclear in my original post - What I amactually trying to do is trade solely the hours between around 2AM and 6AM (maybe ending earlier if I see fit). Basically, I am going to be busy at work from 9-5 EST. I thought that since I cannot trade the New York session, I can look into changing my sleep schedule to trade the Euro session starting with the Frankfurt open.
I am not a big trader (yet ) and I am solely practicing right now with small sizes on a small account. I don't want to have to miss out on the 5 minute timeframe practice, but without the Euro session, I will miss out because I will be in school starting Fall 2016, and also soon going to be working from 9-5 EST.
I need to be up for the 2AM Frankfurt open. From there I trade for a couple of hours. I don't know if I can find a polyphasic sleep routine that works with a 9AM - 5PM job, and a 2AM - 5AM trading schedule, and a wife who will kill me if I am not spending enough time with her.