Me, but mornigs are pretty late out here........ (Dutch trader so US opening hour start at 15:30 here until 22:00) I wake up every day at around 11:00, then get a breakfast , read the newspaper, prepare ro get started and trade MY morning (from 15:30 until 22:00)
Daytrading only, not longer term position trades, I'd say I still make 85% of my money in the first 30-60 minutes of the day. Probably even more so now since after the first hour, the days usually seem like an August friday afternoon right until the close.
lescor, i have been following a strategy that sits out until about 10:30. it trades based off of the 1st hour. i have really been wanting to find a strategy that trades the first hour, to add to my arsenal. could you point me in any direction. (trend, reversal, indicators, etc...) thanks.
Trading the first hour (0930am - 1030am est) of the morning is one of the most profitable intraday cycles of the trading day in my opinion. Note: 0815am - 0930am est is also good on days of 0830am est key economic reports releases. In fact...the first hour of trading presents opportunies for trend reversal traders or a divergence traders... 1. More often than not...volatility is good. 2. Intraday Japanese Candlesticks are easier to analyze and exploit. 3. Divergence signals are easier to see and have more follow-through. 4. Market breadth index confirms trend reversals more quickly. 5. Less dependent upon indicators for a sense of direction. 6. If stopped out for a loss...its usually done quickly...allowing you to prepare for the next trade because the action is still hot... Whereas...in other intraday time cycles...if stopped out for a loss...your more likely going to have to wait longer for another trade signal to appeared. Just a few good reasons above why any veteran trader should explore this particular intraday cycle if not already... Just the same...the first hour of trading is notorious for taking advantage of new traders or those trading it via the seat of their pants (no trading plan). Yet...if a trader is profitable via trading other intraday cycles while ignoring the morning session...don't change your trading plan... stay with what has been working for you. NihabaAshi
...the first hour is the way to go to on the U.S. west coast if you have a day job, too (and maybe always will). It's making a virtue of necessity.
I trade opening orders on the nyse. There's 6 extensive threads on the strategy called "Don's opening orders" in the journals forum. I've been doing it daily for two years and have found it to be a great positive expectancy strategy. You get in multiple positions on the first print of the day. Some guys are flat in 5 or 10 minutes, I'm usually done after 30 minutes. If you're interested read those threads and PM me if you have any questions, I'll try to help. I also run some basic momentum/strong trend filters and try to catch a strong trend for 15 minutes or so in a stock, or maybe get a few 15 cent quick scalps, just some basic momo stuff.
That's been the case for quite some time. But there are more and more setups occurring later, even during the doldrums, which makes hanging around well worth the time. All this assumes that one is continually adapting, of course.
Yes, trading the mornings is much better. I try to get ready by 7 so I can catch that first cycle. Fast trades until 10 or so and then the rest of the day has a creeper trend it seems. Until the last 1/2 hour and that is usually a good one. I adjust my time frame to the time of day......1 minute until 10:30, 15 minute until 3....and then back to a one minute for the close.