Registered: May 2012
08-24-12 01:53 PM
I am looking at trading the mini s&p. I am trying to determine if when I trade could make a difference. My practice is to look and wait for a few specific simple setups and then make a trade.
My first rule of trading is "Never make an unplanned trade". I always know my entry point, stop, and target. In order to manage risk properly in this particular market I prefer to look at situations that seem less volatile. For example if the stochastic is below 20 and macd is positive and the candle pattern looks good, a buy is very strong. But if things are just hovering back in the middle, or moving back and forth rapidly for 1/2 points, it seems to risky for an individual. Fine for a computer. I'd like to play where there is some larger move potential. It makes the risk management a little easier.
One might think that patterns will occur randomly throughout the day. But that might not be true. It is possible that statistically the market trades differently historically when Asia opens as opposed to the middle of the day in New York. I am not saying it does. But it might.
So is there anyway to determine when the best times to trade in a 24 hour market are? Or to gather some historical data to examine statistically. I don't think getting up to check the chart every hour is a practical solution. Thanks for any replies