When it comes to day trading, sometimes tiny is more. For most stock, stock index planned, and index-based exchange-traded funds (ETFs) traders, devoting two to three hours a day is frequently preferable to buying and selling equities throughout the day.
Trading alone during these hours can help you optimize your efficiency because specific hours provide the best possibility for day trading. Trading all day gets far more time than is required for little additional gain—even regular day traders lose money outside of these ideal trading times in any situation and globex360 demo account.
Good times to day trade the stock market
The first two hours of the regular day may be a good time to trade the stock market. This is when the market usually opens at 9:00 am. EST and closes at 11:30 am. EST in the US. The close hour of the day could also be the best time to trade. That is 3 pm to 4 pm EST in the United States.
Trading When the Stock Market opens
Many traders need to trade for the first one to two hours after the stock market opens on any given day. The first hour is mostly the most volatile and offers the most opportunities (and potentially the most risk). Professional traders frequently recognize that a lot of “dumb money” moves at that time, despite how harsh it may sound.
People marking trades based on what they read in the news or saw on television the night before is known as “dumb cash.” The information on which this person act is usually old. Their trades can cause the biggest price swings in one direction. Experienced traders then take advantage of the excessively high or low price and push it in the opposite direction.
Trading During the last hour
Many day traders trade in the later hours of the day, between 3 and 4 pm. EST. Since the morning session, traders have had a long break, giving them time to regroup and refocus. The last hour can appear like the first when looking at frequent daily stock market trends. There are a lot of huge moves and sharp reversals in it. Like the first hour, many inexperienced traders enter the market during the last hour, buying or selling based on the day’s events.
Day trading demands both discipline and awareness, which are powerful in and of themselves. The power will give out if they are overworked. Trading for 2 to 3 hours a day may keep you sharp and avoid mental tiredness, negatively impacting your work. Trying to trade for 6 or 7 hours a day will exhaust you and leave you vulnerable to mistakes.
Everyone, of course, has known levels of focus and discipline. Some traders may purchase and sell all day and profitably, but most traders advantages from trading mainly during the hours when day trading is most profit-making.
Day trading is not for everybody, and it comes with a huge of rules and risks; before you begin, make sure you are clear how to day trade and whether it is suited for you.