Good times of the day to day trade

i think that after 10 is the beginning of the best time to trade because the trend is developing and i think the risk is less. things are moving slooooower. i do like those gifts at the open though, in effect very over bought or over sold! lately i have been so negative though, always short and not willing to change with the trend. like yesterday when the s&p hit that resistance level. i was sure it would break down for the big DROP! OH WELL...

 

Jenny I do the same with five day OutLook

EXPE 20.57 17.24 Sell 0.85 ---> Margial Entry
FAST 55.88 37.99 Buy 4.56
FISV 43.53 40.49 Hold 0.78
FLEX 11.44 9.66 Buy 0.45
GE 34.17 32.30 Hold 0.48
GENZ 72.61 65.34 Hold 1.86
GILD 65.48 59.76 Hold 1.46
GM 22.33 16.89 Sell 1.39
GOOG 410.18 353.38 Buy 14.49
GRMN 76.50 66.79 Hold 2.48
HD 43.99 40.48 Buy 0.90
HON 42.74 39.59 Sell 0.81
HPQ 34.97 32.26 Buy 0.69
IACI 30.73 28.13 Buy 0.66
IBM 84.39 77.65 Hold 1.72
INTC 22.24 19.46 Hold 0.71

 

The first hour of the of the day is the best time to trade, as liquidity and volatility are typically at their peak. Aside from that, the morning session on the whole is better than the afternoon.......

 

this article has been helpful to me. The main lesson is "don't trade during lunch". It's simply not a high probability day trade. More like flipping a coin.


9:30 – 9:50 is a RED zone. The most DANGEROUS time period, except for a very experienced day-trader. The first 20 or 30 minutes can be very profitable, but it’s the most dangerous time for the novice speculator. Volatility creates the largest profits and also increases your risk substantially. It takes about 20 minutes for the market to settle down. Pay close attention to any news or Fed reports before and after the open. Don’t trade during this time period…unless you practice, practice, practice. The RED zone does not mean down or up…it means be VERY careful.

9:50 – 10:10 is a YELLOW zone. Ten o’clock is one of those times you must be on your toes. The S&P often reverses or pulls back during this time period. Look for gaps to get filled during this reversal time period. This is one of the more profitable times of the day. If the market remains stable during this period it usually remains stable until the next YELLOW zone. THIS IS ONE OF THE BEST TIME PERIODS – LEARN IT’S PERSONALITY WELL!! Look for a double top or bottom to start the pullback or reverse. YELLOW does not mean up or down…it’s a time when the market takes a breather, pulls back, or reverses.

10:10 – 10:25 is a GREEN zone. This is the time to really focus on what the market is trying to tell you. THIS CAN BE ONE OF THE SAFEST TIMES TO TRADE; coming off of a pullback or a reverse or maybe just continuing in the same direction. Keep your eye on the Dow and Nasdaq here. Look for the market to move in the opposite direction of the open. The GREEN zone is a little more predictable and if prices move higher at the open it often reverses during ten o’clock and continues down during this time period. This presents a low-risk trade to the up side…go with the flow, and wait for the turn. The GREEN zone does not mean up or down; just one of the safest time frames to trade.

10:25 – 10:30 is a YELLOW zone. It may pause here or flat out reverse again. We will be ready, and we can anticipate this if we are in a trade and use a tight trailing stop. Once again we focus on what the market wants to do here. If you are just starting out, this is the time period you should study. The market has gone through most of the volatility of the day, and now it should form a steady trend till 11:15 or 11:30, and just may continue without any fan fair till 12:00. The YELLOW zone is time for the market to stall, pullback, or reverse.

10:30 – 11:15 is a GREEN zone. This period is a safer time to make Technical analysis work. If it did reverse at 10:30 it may continue in the same direction as the 10:10 period. Note that after 11:15 it is considered to have entered the midday doldrums, so take caution if you are in a trade after 11am that you are approaching a RED zone. The GREEN zone is one of the safest times to trade.

11:15 – 2:15 is a RED zone. MOST LOSSES OCCUR HERE. As you approach twelve o’clock if the trend was moving down it may just move up and vice versa. Many experienced traders call this the 12 o’clock hop. It’s lunch hour for traders on the floor, volume falls off, and it may form a channel or just move sideways. Locals scalp the market and eat you for lunch - Inconsistent follow through on rallies. Only the most experienced should trade here. Remember the RED zone does not mean up or down…it means be extra careful.


1:25 – 1:35 is a YELLOW zone. This is a times that, over and over again, tries to move to the lowest price in the afternoon Most experienced traders refrain from trading during this period. Look out for breakouts to the downside. The YELLOW zone is time for the market to pullback, or reverse. It’s in the RED zone…danger!

2:15 – 3:00 is a GREEN zone. Now that we have the midday doldrums out of the way it’s back to business. Trends are established; Technical analysis can now be put back to work…more action because after 2:00 p.m. the bond traders start to drift in to the market, and after 3 o’clock the Chicago Bond market closes. Look for frequent breakouts in both directions, and keep a keen eye on the next time period. Remember the GREEN zone is one of the safest time frames to trade.

3:00 – 3:10 is a YELLOW zone. After the bond market closes, traders come into the market…look for a reversal or spikes. It’s not uncommon to have news or reports around this time. If it does reverse here, look for the turn, and try to catch the train going north or south; it could be significant, but use caution, be on your toes here. If you don’t buy the ticket you can’t catch the train. Remember the YELLOW zone is time for the market to stall, pullback, or reverse.

3:10 – 3:25 is a GREEN zone. The market starts to calm down between two significant reversal time periods…give it your best shot. If the trend is up, trade with the trend and vice versa. Use a safe strategy not a power trade. Remember the GREEN zone doesn’t mean up or down; one of the safest time frames to trade.

3:25 – 3:30 is a YELLOW zone. There’s a good chance it might reverse here, just like the 3pm time period. Best to let it stall, pullback, or reverse and wait for the next opportunity. A small breakout strategy might work for a point or so. Like any yellow time zone, it’s a time for the market to stall, pullback, or reverse.

3:30 – 3:40 is a GREEN zone. Not much going on here most days; anticipate the last reversal of the day (3:45 – 4:00). Take the time to set up this strategy; look at support and resistance…just what are the possibilities here. The day is almost over, and if you are running out of time to make a trade, try not to panic, take what the market gives you. Remember the GREEN zone does not mean up or down, just more consistent Technical analysis.

3:40 – 3:45 is a YELLOW zone. It’s time for that last reverse…Brokers, speculators, market makers, and specialists are settling trades for the day. It moves the market in funny ways; you just go with the flow. If you see what the market is trying to do, look for the strategy to take advantage of it. Remember the YELLOW zone is time for the market to stall, pullback, or reverse.

3:45 – 4:00 is a GREEN zone. This time period reminds me of the 12 o’clock hop or flop. If the market was moving down in the afternoon session, you can look for a hop; mainly caused by speculators covering their short positions, and vice versa if the market was moving to the up side. Don’t try to stay in the market in the last few minutes…we don’t want to get caught in having our trade move to an overnight position; you may get a margin call.

 

Its always changing. Lots of action all day lately.

 

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agreed.