F-Trader, Take a look at the emini futures to see if it fits your trading style. Stocks can be hard to trade during the mid-day doldrum because the liquidity vacuum especially on some of those thinly traded Nasdaq stocks. The futures market has good liquidity even after the opening hour relative to the Nasdaq Stocks. You can scalp or go for a couple of handles whichever fits your style.
F-Trader, I have gravitated away from daytrading stocks towards daytrading the stock index futures, after an initially unsuccessful forray into the land of the eminis which, thankfully, has become a highly lucrative use of my time... I prefer the second half of the day to trade the stock index futures, once they have had their burst of volatility at the open and have settled down... Following on from your post, I still do participate in the stock market, primarily via swing trading... I do my analysis after hours and send off my limit orders for the various stock positions for execution at the open... A 1pm to 6pm (EST) day works very well for me... I do watch the markets from time to time in the mornings, but I rarely trade them... call me an old fool, if you will, for missing out on all the action that you guys are getting at the open! All the best with your open only trading, Candle
I trade the complete day. 9:30-4:00. There are opportunities arising as long as the market is open, you just need to find them. I eat lunch at my desk. I trade only equities. I am debating whether to start trading some premarket to broaden my scope of trading.
This is all coming from a broke wanna be trader that is reaching toward Credit Card cash advances in order to fund his trading account? Get real, why don't you make a decent living from trading first before posting any advice cause you have zero idea what you're talking about. F -Trader don't pay attention to this n00b. Nothing says you have trade more than you want to. If stopping trading by 11 am is what yields best results, then that is what should be done for the time being. It's freaking August, the worst month of the year during an already tougher environment. Most of the action is done by 10:30am, 2-4 rarely yields anything worthwhile that is of comparable risk/reward of the morning trades. For NYSE & Naz, I notice that after 11:30a, the market turns to crap. Lunch hour sometimes yields some nice bounces & pullbacks but on much lower volume hence less size in the trades and much tougher to get out accurately. 2-3 is the absolute worst time and 3-4 sometimes has smth nice, smaller moves but much more liquid. In general, I notice that the penny fighting puts a lot of pressure on commission costs in order to produce better results, at least for me. I'm currently devising different trading strategies for the afternoons which require certain new tools & a better cost structure.
Well, you've got a lifestyle that requires money. Fine. But that doesn't mean there's anything wrong with your trading. I wouldn't try trading all day long. Unless you're trading thin ones, try raising your lot sizes.
I would not argue that the morning is the most volatile, but I think the afternoon session is the most profitable. Always understand where you are in relation to the open at this time.
Trading longer than need, ie. past the AM, put a HUGE burden on your emotions and discipline. For myself, staying disciplined for a hour or so is far easier than the 6 or so hours that the market is open. In fact it takes some dicipline to walk away after the AM if you don't have other things to do. I understand the winters being tough, I'm in northeast PA. But think about it... how many people do you know that make the money that you make, can work as few hours as you? Having the ability to walk after the AM session, and just hang out, makes even my cardiologist and interventional radiologist friend jealous. You've earned it... so you must live it and enjoy your postion!
Mac i've been watching strong stocks in the pre-market and noting the opening range say after 15 minutes. On a break of the high I then would go long. A good example of me getting hurt with this strategy was last week with NYER. Bought pretty much at the high of the day and sold at the close for a sizeable loss. I also bought some GEPT today and got beat up. I can only trade mornings due to class but the past few weeks have been very fustrating. Thanks
I like the adreneline rush I get from 9:30 - 9:50, then the market seems to stop. I have to agree with this. I am in CA and I just trade the opening and go work an 8 hour job. The rush I get is a great way to wake up.
I do 90% of my trades at the open. Most of my activity is from 9:30-9:50. If I am still holding a potion I will wait it out until 11:30. F-Trader - is the majority of your trading still accomplished by way of position/swing trading? Could you share some of the methods that you have used in your position trading that have made it so successful for you? TIA