Timing Is Important!

Discussion in 'General Trading Discussion' started by TraderAnalyst, Oct 2, 2019.

  1. TraderAnalyst

    TraderAnalyst Senior Investor

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    Timing of a trade is immensely important for a day trader. In day trading, work begins at the opening of the day . and traders start placing orders. Experienced traders have no problem. They know the patterns and know very well the mood of the market but the new traders are inexperienced and are not aware of the mood so they must wait and observe the patterns and then make an order.
     
  2. longtermbull

    longtermbull Administrator Staff Member

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    I found the trick to day trading was to know whether out of hours news would push a share price too far in either direction at the bell. Hold off or jump in....that was difficult.
     
  3. J_C_Anderson

    J_C_Anderson Senior Investor

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    The issue of trading during first hour of the trading session is rather contraversial. There is an opinion that is better to avoid trading at least for an hour after the opening, especially for newbie traders,to avoid losses caused by huge volatility of the first hour. At the same time, this trading style could offer interesting trading opportunities. Sometime you can either get into the position during first our or you will have just to watch the movement without the possibility to join it with an optimal risk-reward ratio.
    So, to be able to benefit from specific dynamic of this period of time, you will need a strategy that will allow you to identify interesting setups and situations. For example, one of the most popular strategies of such kind is the "Opening range trading" providing that you open a trade when the price crosses the range formed during first 15 minutes of the trading session while placing stop order behind the other side of the range. The main idea is that the price will continur movement in the same direction for the entire trading session.
     

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