What is the best time to trade on the exchange?
I would like to recall the old saying as the world “The most important thing is to be at the right time in the right place with the right people.” How to calculate your correct time?
To do this, take your trader’s journal and analyze your trading over a long period, so that the calculations give less error. See if there are any patterns and trends between the number of successful / unsuccessful transactions and the trading time.
It happens that in the first couple of hours of trading you achieve more than during the rest of the trading day. This is normal – no one has canceled the Pattern rule (80% of all the money you earn in 20% of the time and vice –versa. And do not let this fact plunge you into a insensibility and make you think that you are a worthless trader.
Everything is fine with you, you just have to choose the proper time for trading more successfully. Check which tools match your temperament, character and style of trading. And then to act.
How to choose the perfect time for your trade? This is a skill and can be mastered.
AND HERE ARE A FEW RULES:
Be careful and patient when choosing the moment to open or close a position.
Enter the market when it has the highest activity.This applies to Forex, and NSE and any other market.
You need to trade very carefully during the beginning of the trading week or its end. During the opening and closing of the main session, the largest volumes are observed and there may be strong movements.
Remember that without high volatility, the price will not change and trading will not be profitable. Market volatility is a rather dangerous thing, but even a “sleeping” price can change within a few hours and give you more trading opportunities. But still, you should not lose vigilance, since the price can maneuver quickly, and in both directions.
Regarding Forex – if British , indian & American banks have days off, then liquidity and trading volumes are reduced these days.
Rapid price fluctuations in any direction are characteristic for periods of publication of news and reports. Therefore, you need to know the time for the release of news and reports.
Asset prices have maximum volatility during the session period to which this or that stock or currency is related.
BEST TIME ZONES INSIDE DAY
9.30 – 9.50
This is the first 20 minutes after the opening of the session. They give the largest volume, the most dangerous and profitable at the same time, so they are not for beginners.
9.50 – 10.10
Time of the headland – the volume is quite high, but not the same as in the first 20 minutes. Right now, trading is optimal – the volatility of transactions is still high, but some stability and calmness have returned.
10.10 – 10.25
Volatility shrinks and you can trade with little risk. Favorite time of many large traders when they set the tone in the market and move it in a direction favorable to them.
10.25 – 10.30
The market calms down, the high volatility of the day is most often already behind, many traders close their profitable positions at this time. The best time to prepare for new deals.
10.30 – 11.15
A large and safe morning trade zone. But you need to be careful closer to the end of the segment, since lunch time can begin a little earlier or later.
11.15 – 14.15
The best thing you can do on this gap is to have lunch and relax. Do not trade – in this range there are a lot of false breakdowns, torn lateral movements – you will quickly lose all morning profits, especially if you are inexperienced.
14.15 – 15.00
In this period of time, more trends have already been established.
15.10 – 15.30
Keep a trend and be careful – often there are trend reversals and stops at around 15-30.
This is the last half hour of the afternoon session and it is better not to trade. Many large investors are adjusting portfolios at this time. We do not recommend working under such pressure, although volatility in short-term transactions can be quite favorable.
Consider these factors in order to competently organize your working hours, since you cannot physically be in the market all 24 hours a day. Be present in the market when it coincides with its best dynamics – it will help to better track any movement on it. This will be your time for stock trading.
Share in the comments below what time is most convenient for you and how quickly you calculated it. Your opinion is important to us..