Best Times for Day Trading Stocks

In this article we will discuss the best timings for day trading stocks and at the end of the article we will share a bonus tip that will define the time that is depicting the true market direction. What time is most suitable to enter and exit the trade? As you know there are only five to six hours in a day to work in the stock market and the typical intraday traders have to exit the trade at day end. You must know that trade timing is of utmost important in intraday trading. When you are supposed to enter the trade? At what time of the trading day, trends are usually start and when they end? Within those six trading hours of the market, when you should trade to get the most profitability? Let’s find out the answers of all these questions.

Right Stock + Wrong Time = No profit in Day trading Stocks

Dear traders, keep one thing in mind that you may enter in the right stock in day trading stocks but if the timing of entering that stock is not right then you may not be able to make profit in day trading. This shows how important the timing is. You must be thinking that how it is possible that I have entered into the right trade with proper stop loss then what timing has to do with it. If you have not taken the right trade and the RIGHT TIME, then either you will exit the trade unprofitably or the market will force you to exit the trade.

Timing is everything in day trading stocks. Only timings decide in intraday trading that how much profit you take from a trade or how much loss you will take in case of wrong timings. Not many traders have to sense of trade timings and this is the things that is not being taught in any institution. So, take it as a premium content.

Start time is the Noisy Time

You must have noticed that the initial time of the early morning in the market is very crowded time. There is a lot of noise of in the market. Do not take trade in that time especially the ones who are beginners in the day trading. Those who are experienced in day trading can predict the market at this time and can take trade but it is not recommended. Those who are beginners are strictly prohibited to take trade at this time. It does not mean that they should stay away from the market in that time. This early morning is also extremely important time for them to just watch and analyze the market and experience this noisy portion of time. At this time, there is a lot of fluctuation in the market and you will not have any idea where to set the profit target and stop loss. So, leave these 45 minutes of early morning trading and just observe the market in this time. This is also important because the average traded price (ATP) also got set in this time. If the stock remains above ATP, then it is our strong candidate for long trades and it stocks remain below ATP then it is our strong candidate for short trades.

First Time Window for Day Trading Stocks

Now you left with five hours of the trading market. The researches show that after an hour of the market open and before 10:30 AM, trend usually start in the market. It may be in the same direction of the early market or in the opposite direction of the early market. It has also been observed that if a stock is going to start a trend in the upward direction, it normally creates a low in the early morning to fool the novice traders and get their stop losses so that big investors can take those stocks at a discounted price. But after 45 minutes of the market start, it starts taking the direction of its original trend. So, the best time to observe the original trend is between 09:45 AM to 10:30 AM. If the stock remains above ATP at this time, then there are higher chances of it of going up. So, the first window of time for trading the stock is between 09:45 AM to 10:30 AM. After that the trend become stable till 12:00 PM. And from 12:00 PM to 1:30 PM, it usually remains silent or calmed.

Second Time Window for Day Trading Stocks

The second time for stocks day trading is approximately 01:15 PM to 02:00 PM. At 01:30 PM, new trends usually start. If I said 01:30 PM, then it does not mean that exactly at 01:30 PM. Keep a margin of 15-20 minutes on either side. Our experiences show that the trends who start at this time window are usually large and best to trade. You may select stock as per your criteria and can apply your day trading strategies but keep these timings in mind to get higher profitability. If your trade is coming within these defined time windows that there is high probability that this trade will prove to be a good one.

Third Time Window for Day Trading Stocks

The third time window for day trading stocks is after 02:30 PM. When market enters into the last trading hour, then there are higher chances of starting of big trends in the stocks. The this is the best time of the day to trade. The last hour of the market is the most volatile hour and the stocks may go up and down a lot. But this is the blessing for expert trades because more the market is volatile the greater the profits are and this may happen in the last hour within a short amount of time.

Summary

To summarize, the three times zones for day trading stocks are 09:45 AM to 10:30 AM, 01:15 PM to 01:45 PM and 02:30 PM to 03:30 PM with a little modification of 15 minutes time margin on either side or to adjust itself as per your local market timings. In these three time zones, either most of the trends start or end. Major time for stocks reversal is almost at 01:30 PM round about when stock may take a major turn when everyone else is enjoying their lunch. If any trend starts at the last half an hour, keep in mind that either this trend will be very big or very small, not be of an intermediate level. If you focus a little bit on these time zones then the chances of being profitable in the trading market becomes high. The beginner trader may take year to understand these time windows that we have discussed in this article.

Bonus Tip

You must have noticed that whatever the trend is in the market in the last hour is the true market direction in those days. If the market remains bearish throughout the day but becomes bullish in the last hour. It means that overall market direction is upward in these days. And keep in mind that three out of four stocks will follow the market direction. If you take the wrong trade in the overall direction of the market then there are chances that you may get profit from that trade. But if you take the right trade but the overall market direction is on opposite side then there are very rare chances of getting the profit. So, if there is only one thing that you have to care for profitability then it is the market direction.