Trading at the Opening of the Market

 

Transactions at the time of market opening

Volatility isn't just bad. After these first extreme trades, the ideal amount of volatility for beginners is on the market. Therefore, this makes the time frame from 9:30 am to 10:30 am the ideal time to execute a transaction. There are many advantages to trading during the first few hours of market opening.

– The first hour is usually the most volatile and provides ample opportunity to make the best trades of the day.

– The first hour provides the liquidity you need to get in and out of the market. Liquid stocks are large in volume and can sell faster.

– Stocks traded or bought in the first hour turned out to be part of the biggest move on the trading day. If done correctly, it can offer the best returns compared to other timeframes during the trading day. If done incorrectly, the loss can be enormous.

– After 11:00 am, transactions are usually time-consuming and in small quantities. This is a bad combination for daytime traders who have to complete the exchange by 3:30 pm. If you need more time, it's worth extending this session to 11am. However, a strategy that limits trading to the first hour is suitable for day trading.

Learn more: Best Time Frame For Day Trading

Keep the big picture in mind

The range from 9:30 to 10:30 is not a difficult rule for all traders to follow. Generally suitable for beginners, but can also be tailored to your personal needs. It is wise to keep the big picture in mind.

For example, in addition to using the best time frame for daytime trading, another strategy is to keep the day of the week in mind. Monday afternoons are often the preferred time to buy on the market, as historically they have tended to fall at the beginning of the trading week. Experts recommend selling on Friday, just before the dip on Monday.

Moreover, not all traders need to fill the first hour with activity. Those who tend to make multiple trades on a trading day can choose a shorter time frame. Alternatively, daytime traders who make only a handful of trades a day can choose a longer time frame. Veteran traders are also known to switch their timeframes on different days, depending on how active they are.

Also read: Should I Trade in the First Fifteen Minutes?