Time bounded movement

The most important aspect of day trading is time. If you have knowledge on correct market timing and correct trading hours according to your personality, you will become successful eventually. Most of the traders do not give value to time and think that they can make money all day. Sitting long hours in front of computer screen (stock market) will make you exhausted and impatient. You are bound to take wrong trade if you do not understand the nature of the market, as per your preferred and suitable time. You need to wait for the right moment and for the right trade. If you are able to do so.......Bang on.....

Let just slice the timings of the markets in few pieces.

Pre-market: Pre market starts at 9:00 AM and ends at 9:07AM. Experienced players puts their bets on pre-market. at 9:08 AM. You will be able to see all the opening prices, sectoral and index movement after the pre market. You will also be able to know if the market will flat, gap up or gap down. Next 7 minutes market will be at ideal state.

9:15 AM to 9:30 AM: This is the time after the premarket, based on the broader market, experienced traders and investors starts creating their position. During this time market will have a huge liquidity and volume. Market tries to find out a specific direction during this time. It might be a Bearish or Bullish trend.

9:30 AM to 10:30 AM: Once the market finds out the direction the trend will continue till 10:30 AM +- 15 mins. If the volume is too high and the sentiment is too strong then it might continue for another 30 min. This time most of the traders make money if they have found out the correct short-term direction.

10:30 AM to 11:30 AM: This is a pause or retracement time for the market. Generally, markets tend to take reversal from this point and retrace till its support/resistance price. This is the time when you will observe less amount of volume. Many traders exit who have entered during the morning session.

11:30 AM to 12:30 PM: This time market will see a very less volume and market becomes indecisive and try to look into the international markets like Europe and United Kingdom's Stock Market (This is the opening tome for the international Market) for a clear direction. Most of the days markets become flat during this time with low volumes.

12:30 PM to 1:30 PM: According to the International market's direction and mid day's news flow market starts moving again. This time volumes comes in and market starts to move as per the direction. You will observe a huge volume during this time and a price fluctuation as well.

1:30PM to 2:30 PM: If the sentiment is strong in the last hour, then the markets move on the same direction else it will be flat unlike there is a news driven movement. You can observe most of the major movement happen during this time frame.

2:30 PM to 3:15 PM: If the market was flat in the last hour, then you will observer a huge volume with a same direction during this time. Otherwise, it will be a retracement time for the specific stocks. Also, this time volume will come, because most of some traders closes their position and some take position for Buy Today Sell Tomorrow (BTST).

3:15 PM to 3:30 PM: This is a closure time, most of the bullish stocks will starts moving up during this time due to the BTST trades and many experience trades acts during this time. You will also observe a huge volume during this timeframe.

Key points are, if you want to become a profitable day trader, please observe the market from 9:15 to 9:30 and then as per the direction take the trade. Always try to look into the volume. Close the trade in between 10:15AM to 10:30 AM based on the volume and retracement patterns. then wait until 12:00 PM for the next trend, then take a trade and try to close it by 1:30 PM based on the volume and retracement patterns. Next try to take another trade in 2:30 PM and based on the momentum exit from it after a decent price appreciation and volume.

There are some exceptions as well, some stocks may go bullish for the whole day and gives 10-12% momentum on day chart they do not follow the time rule. I will discuss about the those in my upcoming posts (how to observe those stocks and how to trade). Observe the market closely and trade safely. Always maintain a stoploss for your trades.

Remember that trading is all about patience for the right moment, you have to wait 80% of the time sitting idle just to watch the market for the correct moment and price.

** This post is meant for the intraday stock traders only, not for index, future or option traders.

Comments

Are you Regrating about your exit-price in stocks?

Every trader often faces a common problem that they regret about their exit price. after exiting the trade, the stock has started another rally and traders regret why they have exited from the stock. Many veteran traders have faced the same issue. Almost all the traders want to buy at a lowest price and sell at a highest price. Traders argue that buying at lowest price could be treated as risk as the trend reversal has not started yet and there is no confirmation that there will be a reversal after that price. Agreed....... But what about the selling? How do you identify the highest price to sell? Some traders believe that you cannot take the whole rally and make an extremely good profit. Accept whatever you are getting from the market and be thankful. That's okay.... Now, the question is at which price we can sell? Before selling any stock in intraday, you just need to check the following points. Nearest exponential pivot point. Nearest round figure of the price. ...

Good habits of an Intraday trader

Habits define a person and his behavior. Personality and behavior is an important factor of a successful trader. A mental balance and calmness is the key factor of any successful trade. Just imagine, the mental state of yours when you are in the trade. when the price is closer to your stop loss, the intensity of your pray to god become higher. Image the regret when the price moves faster after hitting your target price. Fear, losses, greediness or profits always effects your mental state of your next move as well. After hitting a consecutive 4 profits in a row makes you more confident to overconfident and a consecutive 3 losses in a row can put yourself in darkness. These are the two sides of a single coin. In this mental, emotional and psychological blockages you can overcome by having few good Habits. Be an early riser. Do some exercise, yoga or at least breathing exercise. Read a business newspaper every morning. Evaluate the speculation and the news from the news headlin...

Take Intraday-trading as a Business

Many Traders in stock market think that Intra-day trading is a source of regular quick money, however, most of the people, especially investors and swing traders believes that, money can be ruined by intra-day trading. The problem is mindset, you can be an investor, swing trader or a day trader, you have to have a different kind of mind set for each of the category. Category is not the problem, mindset is. If you really want to be a successful trader, you should take trading as a business. Profit and loss are the integral part of any business, the same is applied in stock market as well. let’s take a hypothetical situation that you are going to set a business. What are the points you need to take care? Out of thousand points few basic points are mentioning herewith; Business establishment capital, Operating capital, Location of the business, employee, Product, Knowledge on the business or how to make profit from that business (business model), Journal, Tax calculation, customer etc. ...

The Early Morning Intraday Trading Strategy -1

Everyday a very similar pattern I have observed in the stock market, while market opening time. Generally, I follow a 2 min candle chart pattern. This is a bullish market pattern. If you can master this pattern, you can take a few trades and can make a lot of money. One more information I would like to provide you that it is an intraday trading pattern with a gap up stocks. You can trade in future, cash and option, which ever financial instrument you are comfortable with. As you know the key factor of any business is demand and supply, in this pattern we will try to observe that demand and supply zone after the first candle and with a gap up stocks. Criteria of the strategy: The stock has to be a gap up stock. There will be a Hugh buying need to be observed during the first candle. The volume of the first 2 min candle has to be absurd (example: 3 million, 6 million, 1000k or higher but it should not be in 100k or 200k.) the stock should be shown up about more th...

Indicator is your enemy

When a Trader starts trading, he only believes on the indicators. Almost all the unsuccessful traders use one or many indicators in combination. SMA, DMA, RSI, MACD, Bollinger Bands, VWAP, Stochastic etc are most commonly used indicators in the market. Many novice traders believes that 20 SMA and 200 SMA cut over is a best signal, some believes that 80 RSI point is overbought position and 20 is oversold position. Some believes that exceeding Bollinger band is a best signal. Some of the traders uses a few indicators in combination to identified the best signal. Sometimes they are successful to trade on those trading systems but in the long run they fail to make profit using those indicators. The reality of any indicators is same and that is, all the indicators are mathematical formula of its historical prices. The indicating points are just the derivative of the recent past prices with some visual effects. If you are believing on those visuals .... best of luck. Do you really...

Important Money management Concept for Traders

All profitable trader follows a strong money management rule. Nowadays most of the traders think that money management means Risk to reward ratio only. But money management actually having a lot of components including Risk to reward ratio. If a trader does not follow a strong money management rule, he cannot grow his money in a significant way. Money management have the following components. 1. Capital allocation for different type of trading (intraday, swing and investment) 2. Account size or Total capital. 3. Risk per trade. 4. Position sizing. 5. Increasing the position sizing. 6. Incremental buying or selling (Pyramiding) 7. Leverage for the Trading system. If you understand the above seven money management rules, and if you can implement it correctly, I think you will become profitable sooner or later and which will make you wealthy eventually. 1. Capital allocation for different type of trading (intraday, swing and investment): Many traders th...

Grab easy Money from stock market

The easiest way to make money from trading is easy money capturing strategy. You may already know that the market is mostly volatile, unpredictive and sometime trending in nature. Most of the traders try to capture money form the market most frequently and without doing the analysis, that’s actually makes them too loose more money in the market. However, trading is all about waiting for the right time to take the right trade. 80% of the time you just have to seat calm and just to watch the market so that when you get any opportunity, you can capture that and make as much as money you can. Most of the Traders try to capture money from all kinds of market, in my opinion it is not correct. Firstly, you need to understand the nature of the market first and the day (if you are doing an intraday trading). The nature of the market depends on the geo political situation and the financial stability and last year/month and days performance as well. All the markets are connected from investors ...

Your ego is your enemy

The biggest mistake any intraday traders commits during its initial journey is to attached with a specific stock or to become egoistic with it. Either in the cases traders loses their money. Let me explain with an example. Suppose a Trader has bought a stock at a certain price and after his buying he has fixed a stop loss in his mind. Now when the stock just near to stop loss price, it formed an interesting pattern in candle stick. Now the trader is thinking of a reversal and he just changed the stop loss a few points lower. There might be a possibility that after a certain retracement the stock might fall lower. Sometimes traders do not put a stop loss in the system but in mind and changes the same after a while when he is in loss. Sometimes traders just wait for a reversal and fight with market hoping and praying for its buying price. Even if it comes to a buying price, they change their mind and wait for a while hoping for a profit. Hope does not work in stock marke...

Is it realy possible to make money from Intraday trading?

Every traders, in their life have at least once, tried intraday trading. Most of them failed to succeed just because they had a confusion of whether it is possible to earn money from intraday trading consistently. I am doing it successfully for a longer time. I also beleave that the question arises to your mind because, you want to do so but failing. Don't worry, it just a matter of time you will definitely win. As per me , if you believe that you can make money from intraday trading, you will. but unfortunately after failing quite a few time most of the traders give up. Correct decision making, understanding the trend for short term basis, following the news and understanding technical analysis and price action is the key aspect of doing consistence profit of intraday trading. If you want to do so, on regular basic, set up your mind first towards the strategy and practice your strategy in the market. Analyze what kind of trader you are, do a research on your mindset, understand y...

Timeframe , Chart set up and Trend duration

Chart set up is one of the important aspect of trading. You can be an Intraday trader, Swing trader, Future or Option trader, but setting up the correct chart is the key to your success. In broader spectrum, it has been seen that traders generally follow, 1min, 2min, 5 min, 15 min, 1 hour, 4 hours, 1day, 1week and one-month candlesticks charts. However, the current market price is same for all of the charts, but the position of the price is different in different timeframe. Traders try to find out the value of the price in different timeframe. Trend of the price plays an important role for profitable trade in this aspect. Generally intraday traders and scalpers follow 1min, 2min, 5 min, 15 min, 1 hour candlesticks chart pattern and Swing Traders follow 1 hour, 4 hours, 1day, 1week and one-month candlesticks charts. Traders also uses indicators on top of these charts to get a perfect indication about buying and selling. As we all know that all the indicators are visual effects of...

Trader maker

Search This Blog