I’m sure we have all heard the phrase “The early bird gets the worm”. This pretty much stresses the importance of starting something early to make the most of the potential outcome. This mindset is the same when it comes to day trading. Day traders take positions based upon their analysis of a stock’s possible price direction within the trading period. Traders try to take the upper hand on minor price movements by buying low and selling high in a very small window of time. We will dive into that in this article, so you can learn to use your time management efficiently. Also, so you know you don’t have to stay on your device from 9:30 a.m. to 4 p.m. to be a successful trader.
Starting your day early improves your concentration and gives you the alone time needed to get yourself situated to start trading. We all have different things going on like family and coworkers that require our attention. Your willpower and creativity are highest in the morning. What may seem like a little investment in yourself will add up to something bigger over time. Studies have shown that your willpower declines over the day because you suffer from decision fatigue. Just like working out a muscle, your ability to make decisions get tired. You are getting ready to invest money, but also take time to invest in yourself.
Starting rushing can let emotions sneak in, so it’s better to be early to avoid this. Get yourself in the habit of getting up a little early, so you can get yourself ready. When you are getting your computer or device ready to day trade in the morning, remember to breathe and not let emotions take the lead. Day trading is all about using the patterns you have learned to study and determine when it’s best to make and leave a trade. Label your 1-min charts, keep an eye as the market opens and set your stop loss alarms.
Within the first few minutes of the stock market opening in the U.S. at 9:30 a.m. ET you will notice a lot of buying and selling by traders heavily. Stock-trading volume and liquidity tend to be clustered between 9:30 a.m. and 10:30 a.m. Volumes measure the number of shares of a stock that are traded on a stock exchange in a period. Liquidity is being able to find a buyer for a stock paired up with a seller who is willing to sell and vice versa for every transaction. Think of 9:30 a.m. ET to 4:00 p.m. as regular business hours to sell stocks.
Day traders depend on trading volume and liquidity to identify the proper patterns and make swift profits. Volume is important because it can help day traders confirm directions the market is moving and when to get in and out of positions. Markets are most explosive at the opening hours because of the news that has come out while markets are closed, as well as orders placed by traders that go live when markets open. It is also when most traders will be buying and selling stocks, so this is often the most volatile and active period for day trading.
Midday & Power Hour
A meal is eaten when you wake up too late to have breakfast, but do not want to go until lunch without having eaten. As a substitute, you have a single meal called brunch. Just like brunch, which is not done early in the morning or too late in the afternoon; the hardest time to day trade is between 11:00 a.m. ET and 2:00 p.m. ET. During this time, it’s harder to get good setups because trading is slower and people are having lunch. At 11 a.m. the market became very choppy going into noon as well, it wouldn’t be advised to take a trade during this time. Will every day play out the same? No, it will not, which is why it’s very important to study the chart and keep this tip in mind, and keep track of time.
Power is defined as moving with great speed or force; which is seen in day trading when the stock market moves quickly during a certain time. Power hour takes place during the last hour of the trading day between 3 p.m. and 4 p.m. EST. During this time, large and frequent trades are made. Power hour stocks are good for traders looking to make some speedy returns. This is because the market closes at 4 p.m. EST, so day traders are looking to close old positions and open new ones to heighten their investment. This would be one of the best time frames to day trade if you missed out on the early bird special.
Summary: Day Trading Hours
Benjamin Franklin said, “Lost time is never found again”. So, that is why it is important to know what day trading hours are the best to begin trading for many professional day traders. You learned that the early bird special and power hour are the best times to trade. Brunch on the other hand has been made with the intent to kick back by having a mimosa and a late breakfast. The same applies to your trading during this time, use this time to just study the chart and not jump into the market when it’s choppy. Let the trades come to you, don’t go out there chasing them and make hasty decisions. Remember, the goal is to make money, not lose money.
My goal has always been to help as many day traders achieve their personal financial goals, whether they are novice traders or experienced traders. The MK VIP training has plenty of resources to help you get started on reaching your day trading goals. With my program, you can learn about price volatility and stock prices. You will be profitable for at least 80% if not more of your trades. I can teach you the best trading strategy that if you put in the work and practice, you will have consistent winning trades. I am here to not only guide you with tips like day trading hours but any needs in your trading journey.
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”