5 I have been asked this question many a times why I don’t trade the open as easy and quick money is always made there. My response has always been it’s not within my gameplan. Which hours to put on trades is one of major criterias of my trading and has given me high probability trades with minimum risk.
I break it down into two
1. For morning session 10:00-11:30am
2. For afternoon session 1pm- 2:30 pm.
I have mentioned 6 reasons in total for both morning and afternoon session.
The thesis behind morning session:
1.By 10:00 am whichever stock that you want to go long or short would have shown you the trend by then.
2. The type of candles that have been laid down you can evaluate it easily. If before 10 am , the candle laid out were whippy and choppy with big tails up or down chances of you finding a good entry point in such a stock would be low.
3. Spreads are tighter than the early morning rush, hence easier to define risk and if the trade reverses against you ,you can smack it out easily, rather than an early morning trade say at 9:35 where you put on a trade and if reverses on you the stocks moves so fast and spready that it’s highly likely you won’t know what hit you, you would be like a deer in front of a car (it has happened to me before many a times but not anymore).
4. Even though you might have made watchlist from yesterday not all of them would have triggered or moved the way you would have thought so. Hence between 9:30am- 10:0am you can build a solid watchlist based on the market direction on that particular day.
The thesis behind afternoon session:
1. Whichever stock that has trended in the morning, it will usually give you another opportunity unless the stock has already maxed out its daily range or its extended on other timeframes.
2. Spreads are controllable and risks can be more defined.
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5 Responses to “Safest and Best time to Trade during trading day”
Channel Guy Trader
Great Post Mark
pitbull
Agreed 100% !
Woodshedder
Morning is always a mess. Good post!
Mario MO
Absolutely agree. Only met a handful of guys that actually make money at the open. Real money.
Great post Mark and also tip my hat to you for your great level of comitment and discipline to stick to your plan
Po Pimp
Nice.
They don’t call the open “Amateur Hour” for nothing. Also be mindful of the saying “Amateurs open the market, pros close it.”