What’s the reason behind trading between 9 to 11 is the most profitable time zone so the first thing you want to split day trading into three different time zones that’s personally what i did at the very beginning of my career so 9 to 11:11 to 2 and 2 to 4. those are three different time zones that represents different strategies 9 to 11 normally represent intraday trades.
So let’s say you want to shore into a bank shore you want to buy into a pullback into a multi-breakout those are specifically designed for intraday trades then 11 to 2 time zone it’s called midday now normally midday trades doesn’t really stay consistent profitable now they do work seasonally so I do not recommend for beginners or people who are trading for a long time to get into that time zone because midday trades are very
unpredictable according to the five years of
statistics.
Now the last time zone I want to talk about will be two to four two to four is called the late day trades now those trades do stay consistent profitable depends on what type of pattern you’re trading let’s say you wanna short into a momentum shift trades and you wanna build a massive swing short to hold over nine and potentially hold for one to two weeks and that is very ideal building a position late day momentum shift normally comes after 2 30.
some of the injury traits does happen between two to four that’s when stocks is trading mass amount of volume which it’s called the buying sufficiency.
If you haven’t checked it out buyers efficiency first threat day momentum shift and potentially building a massive screenshot those are the four patterns you can use when you are trading in between two to four now most of my trades are placed between 10 30 to 10 45 i do see a lot of beginners tend to make mistakes they want to place a trade as soon as possible after the market open that’s the mistakes i made early in my career as well people are too eager or too rushed into a trade at end of the day they will end up taking loss because they don’t really know the volatility and the potential spiking percentage after the market open the reason why i place the trades around 10 30 to 10 45 is because i want the chart to start forming a pattern that i can recognize and also is trading sufficient enough volume that tiny little bit volume will not change the stock price dramatically.
So let’s say during the pre-market there is no volume was trading before 9 30. all of the sudden after market open the stock is trading 5 million 4 million 10 million volume but I cannot estimate how much volume is going to trade throughout the entire day because I only have that small time range of reference but ninety percent of the time when you are looking into the pre-market volume you can kind of estimate how much fun is going to trade throughout the entire day ninety percent of the time you can calculate how much volume is going to trade throughout the entire day so you can kind of know that the stock is going to get crowded or not if the stock is very crowded that means the stock has a really high computation after market open
So it’s really difficult to get a very good entry if the stock is crowded in average you kind of have to wait between 30 to 45 minutes after the market open trading about anywhere between 40 million to 50 million volume and potentially develop a consolidation that’s where you should sizing in as a shorting positions for long positions you still have to wait for 30 minutes to 45 minutes because people tend to chase into the breakout after market open then the stock rejects them make them to sell into a dip that’s where you take the opportunities to size into a potential breakout so those are the reasons why you should choose to trade between 9-11 and that should give you a very consistent trading performance and also doesn’t take the whole day so you don’t have to sit in front of computers for eight hours and watch the chart to develop.
Thank you so much for read this