Philosophy

Best Online Trading Times

Typical Trading Floor

Typical Trading Floor

Although there are opportunities throughout the day in online trading, Lets break it up into three sections so we better have an understanding of what to look forward to in day trading, After all it is called day trading for a reason. As we have stated previously, the best results for day trading usually occur during periods of great volatility. Unless specific events such as the entire financial or auto industry heading for the crapper, The highest periods of volatility are generally the fist and last hours of the trading day. It is during this period when the trading volume is normally at its peak.

The period during lunch is usually very thin as the many market makers and traders are otherwise engaged in lunch or non trading activities. Although there are opportunities during this period is very difficult to trade and should be avoided by those new to day trading. This does not mean, go out and take a 2 hour lunch, quite often during the lunchtime hours you may pick out a stock whose volume is steadily increasing or already approaching its daily average volume. You can make note of this or if the situation warrants it try picking up some shares on the bid and see who is selling and who is buying. The ease of difficulty of buying or selling shares on the bid or offer may speak volumes of what that stock may do. Online trading is about picking up on potential opportunities and knowing when to act on them.

It is always preferable to try a few positions and see how they are working for you, if they seem to be profitable and doing as expected then you may consider getting more aggressive. If they are not working for you, you can consider your exit strategy rather than adding to already bad positions. When day trading many traders do not enter positions until after 9:45 in order to see the true trend for the day and what stocks may be in play. Depending on your skill level, many experienced online traders prefer to exit positions by 3:45pm and go home flat and be able to sleep well. Having said all this, it is possible for that day trading to make money before 9:45 and after 3:45.

Noah Hochman

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Noah Hochman

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