The answer to the question," Is there a best time to trade the forex?" depends on your objectives. If you are trading the forex based on earning a higher rate of interest then Wednesdays are the best day to trade the forex. You earn triple the interest on your currency trades.

The Forex market,as you know, is a 24 hour market.

Forex trading hours, trading time:

New York opens 8:00 am to 5:00 pm EST

Tokyo opens 7:00 pm to 4:00 am EST

Sydney opens 5:00 pm to 2:00 am EST

London opens 3:00 am to 12:00 noon EST

As you can see there is an overlap in trading times.

New York and London - 8:00 am - 12:00 noon EST

Sydney / Tokyo - 7:00 pm - 2:00 am EST

London /Tokyo - 3:00 am - 4:00am EST

As trading pairs overlap, they become more active. If you are day trading the forex these would be the times of greatest volatility.

Remember that the forex market is unpredictable. As we have just seen the stock market ( February- March 2007) can affect the volatility of the forex market.

Have your money and trading rules in mind before entering into any trade. Trade a percentage of your account that you are comfortable with and that will not leave you with a margin call if the market does take a major dip.

Have your exit strategies in mind before entering your trades as well. Don't be greedy. There are fortunes to be made in the Forex market but fortunes have also been lost here.

The key to success in this or any trading market is to know what level of risk that you are comfortable with and to trade with your money rules in mind and not your ego.

Trade to make a profit not to get high or pat yourself on the back for your own brilliance at the occasional slam dunk.