2007-11-29 19:22:18 · 4 answers · asked by VIPIN S 1 in Business & Finance ➔ Investing
Depend on the price evolution all over the day.
Generally major investors enter after 1-2 hours to work over an established intraday trend
2007-11-29 20:00:06 · answer #1 · answered by computolo 6 · 0⤊ 0⤋
There is a definite trend in price and volume during the day. The best time to enter a trade is between 30 minutes and one hour after the market opens. Some traders will enter after a set number of bars. In essence there is an influx of buyers and sellers who either entered their orders after the market closed the night before, or before it opens in the morning. They will usually be reacting to some news that came out after the previous days close. The hope is that this large influx of orders will cause an over-reaction in the stock price until those orders have passed through the system. Once those orders clear, the stock price will rebound back off of the highs or lows that it has established. Some traders will move in at a specific time, some will wait for the price to re-test the highs or lows looking for support or resistance. Some look for patterns just like a technical trader would in a daily stock chart. There are many ways to play this phenomenom, but it is definitely there. You just have to be smart enough, and gutsy enough to exploit it.
EDIT: You must also use very tight stops, or you risk taking some major hits, when the price moves against you.
2007-11-30 08:12:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Generally, watch the firstfew minutes, if all is well and 'even', sell the next few, and then watch again, and then, you know how the day goes for trading: if favourable, buy for the next few minutes. Take a break, and watch closely: then, you would know what to do, buy or sell! good luck!
2007-11-29 19:35:19 · answer #3 · answered by swanjarvi 7 · 0⤊ 0⤋
No best time... and if you're asking a question like this - you shouldn't be day trading.
2007-11-29 19:30:09 · answer #4 · answered by [z]ther 5 · 1⤊ 0⤋