Morning Trading Question for Seasoned Traders
- Thread starter daniel33
- Start date
Trade whenever you get trade signals...
It's as simple as that.
However, some traders may be using a method that reacts well to volatility.
Thus, they are getting more trade signals and more follow through to profit targets when volatility is rising.
Those types of traders will tend to say that's it's favorable to concentrate their trading in the morning hours or when ever their trading instrument tends to be volatile.
Simply, you need to know what type of trading strategy someone is using before listening to their advice about when or when not to trade.
Thus, if your trading strategy is different from the trader that you've read those comments...
You need to take their commentary with a grain of salt.
Yet, after you get some years worth of data under your belt involving your own trades...
You can then use statistics to determine what time of the trading day you tend to make or lose money.
That information alone will tell you how to better manage your position size, when to trade or when not to trade...
That info is a trading edge.
Mark
I agree the first hour or two generally provides some of the "better" trading opportunities. There is even a term for it... the golden hour.
That said, I 100% agree with BlackBison. It is a mistake to trade solely on this type of characteristic. As anyone who has traded a while knows, these type of "perceived" characteristics have a way of proving themselves inaccurate, especially when it involves YOUR trading.
My suggestion, again the same as BlackBison, is to trade whenever the proper opportunity presents itself throughout the day. But further enhance this by using a trade journal, for each and every trade, winner or loser.
If properly journaled, you will be able to pinpoint days/times that are most applicable to YOU. For instance, I know for myself, the golden hour on Mondays, and even more precisely, days following holidays, as will be the case next Tuesday, are not the same FOR ME, as the golden hour on other trading days. I also know, FOR ME, the last hour of the trading is far more "dangerous" than a lunch time slowdown. This represents only a few of the pieces that can be culled from a complete and disciplined use of a trade journal. Include your setups and reasoning, and eventually you'll learn whether making trades in the first 10 minutes of rth is counter-productive FOR YOU, or not
.
Good trades to all.
Osorico
That said, I 100% agree with BlackBison. It is a mistake to trade solely on this type of characteristic. As anyone who has traded a while knows, these type of "perceived" characteristics have a way of proving themselves inaccurate, especially when it involves YOUR trading.
My suggestion, again the same as BlackBison, is to trade whenever the proper opportunity presents itself throughout the day. But further enhance this by using a trade journal, for each and every trade, winner or loser.
If properly journaled, you will be able to pinpoint days/times that are most applicable to YOU. For instance, I know for myself, the golden hour on Mondays, and even more precisely, days following holidays, as will be the case next Tuesday, are not the same FOR ME, as the golden hour on other trading days. I also know, FOR ME, the last hour of the trading is far more "dangerous" than a lunch time slowdown. This represents only a few of the pieces that can be culled from a complete and disciplined use of a trade journal. Include your setups and reasoning, and eventually you'll learn whether making trades in the first 10 minutes of rth is counter-productive FOR YOU, or not
. Good trades to all.
Osorico
I think it depends upon the strategy or 'edge' the individual trader employs. I will give examples for a few very successful traders I know personally and have traded alongside.
Trader G: he is constantly in the market for 20+ hours per day, because his strategy employs intermarket arbitrage and order queue gaming.
Trader T: he only trades the overnight futures markets in European debt futures - although those markets are open during U.S. hours
Speaking for myself, I can attest that my current fave equity strategy seems to gravitate towards 'random walk' and away from predictability the last hour or so of U.S. trading hours. I also tend to avoid fixed income yield curve and energy calendar/production spreads during 'softer' hours unless I enter into the trade with the pre-conceived notion that I'm going to carry it overnight. I often try to cover existing positions or enter new positions during off-hours based upon volatility spikes - that probably happens only a couple times a month.
Peace
Trader G: he is constantly in the market for 20+ hours per day, because his strategy employs intermarket arbitrage and order queue gaming.
Trader T: he only trades the overnight futures markets in European debt futures - although those markets are open during U.S. hours
Speaking for myself, I can attest that my current fave equity strategy seems to gravitate towards 'random walk' and away from predictability the last hour or so of U.S. trading hours. I also tend to avoid fixed income yield curve and energy calendar/production spreads during 'softer' hours unless I enter into the trade with the pre-conceived notion that I'm going to carry it overnight. I often try to cover existing positions or enter new positions during off-hours based upon volatility spikes - that probably happens only a couple times a month.
Peace
nihaba is right, if you are a scalper especially the first couple of hours will prolly be better.
daniel you need to say what style of trading you have then we can help you better
daniel you need to say what style of trading you have then we can help you better
Thank you for taking the time to respond and offering your most esteemed suggestions.
My style of trading is that of buying support and shorting resistance and getting out when I'm clearly wrong, very simple and conservative. Heck, I'm so conservative I trade "100 Spy" but at least I'm cash and proud of graduating from the simulator
Once again, I'm very thankful for your generosity in sharing your experience, I don't take it for granted.
Daniel
My style of trading is that of buying support and shorting resistance and getting out when I'm clearly wrong, very simple and conservative. Heck, I'm so conservative I trade "100 Spy" but at least I'm cash and proud of graduating from the simulator
Once again, I'm very thankful for your generosity in sharing your experience, I don't take it for granted.
Daniel
Daniel
I can say there have been alot of favorable and intelligent responses to your question.
Examples: your style, daily set ups, liquidity......etc
I can say for myself, I generally stay away from the immediate open, and for me lunchtime is just a churnfest(however it does present midday setups, which I look for).
But remember everyday is different too.......as along with every trade. Get to know your stocks!
I have a similar style to yours, so I hope it helps....but I don't trade stocks.......over 10 mill a day(volume) and even thats a stretch..... thats why liquidity for me is very important!
I also trade the same group of stocks, so it helps me too!
Good luck.. hope it helps
I can say there have been alot of favorable and intelligent responses to your question.
Examples: your style, daily set ups, liquidity......etc
I can say for myself, I generally stay away from the immediate open, and for me lunchtime is just a churnfest(however it does present midday setups, which I look for).
But remember everyday is different too.......as along with every trade. Get to know your stocks!
I have a similar style to yours, so I hope it helps....but I don't trade stocks.......over 10 mill a day(volume) and even thats a stretch..... thats why liquidity for me is very important!
I also trade the same group of stocks, so it helps me too!
Good luck.. hope it helps
Quote from gnome:
It'd be a worthwhile goal to get enough capital to be able make 1-3 trades per day in the first 2 hours.... then go play golf.
LOL!
Quote from gnome:
It'd be a worthwhile goal to get enough capital to be able make 1-3 trades per day in the first 2 hours.... then go play golf.
or move to the west coast and do it anyway.
I have only been working the first 3 hours a lot lately, but for me, that means about 90 mins before you equity traders as bonds get cranking around 8:00 EST.
Thing is, I live in Cal so that means 5am. So yes, lately I have been done at 8am!. Problem is, then what? If I still lived at a ski resort it wouldn't be an issue. I could get another job, but I don't really know what that is (yes, always been a trader, more or less anyway). Trading involves so many dilemmas!
I will go back to full day (5am to 1pm) after Labor Day I think. Too much lounging gets old! Leads to too much posting on ET.