Should you trade in the first hour?

Should you trade in the first hour?

Generally speaking, day traders need volatility to make money, and the first hour on Monday can be volatile. So, if you’re an experienced trader looking for short-term plays, you might consider being active at that time.

What time do professional traders trade?

Regular trading begins at 9:30 a.m. EST, so the hour ending at 10:30 a.m. EST is often the best trading time of the day. 1 It offers the biggest moves in the shortest amount of time. Many professional day traders stop trading around 11:30 a.m., because that’s when volatility and volume tend to taper off.

What is the most volatile time to trade?

The first hour of trading, beginning at 9:30 a.m. Eastern Time, is the most volatile of the day, with floods of orders based on overnight-night news and analysis. This creates large price swings in a short amount of time. While movement can seem erratic, trends or ranges will develop.

Why is the first hour of trading the most important?

Let me make this easy for you, only focus on the first hour and watch how simple it all becomes. The first hour of trading provides the liquidity you need to get in an and out of the market. On average the market only trends all day less than 20\% of the time.

Is it better to trade according to the business of the day?

However, once that order flow has been completed and the commissions tallied, the true trend of the markets is often found, and the professionals will trade according to the business of the day. When we are waiting for our intraday trading signals, it can often be beneficial to be patient.

Do professional traders trade more frequently?

In fact, statistics show that traders who trade relatively infrequently consistently make more money on average than day traders and traders who trade very frequently. So, most professional traders trade higher time frames, and as a result of this they trade less frequently than what most people might think.

Why should you avoid trading during the first 30-minutes?

It really comes down to the level of action present in the market early in the day, which keeps us all mesmerized. In this article, we will cover 6 reasons you should avoid trading during the first 30-minutes in order to increase your odds of long-term success.