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Best time frame for intraday trading
When it comes to intraday dealing, the adage "less is better" is always true. In general, it is better to restrict intraday trade to a few main hours rather than buying and selling stocks during the trading day. In reality, traders who deal with securities, index futures, and ETFs have found that devoting one or two carefully selected hours per day to trade has proved to be more profitable.
Intraday Trading's Best Time Frame
Intraday trading is conducting within one or two hours of the stock market launch. In India, however, most stock market trading channels begin broadcasting at 9:15 a.m. So, why not starting at 9:15 a.m.? Trading within the first 15 minutes will not be as risky if you are an experienced investor. It's better to wait until 9:30 if you're a novice. The explanation for this is simple: markets respond to the previous night's news in the first few minutes of the market opening.
Sharp price moves in one direction, often despite in trades. People make their best guesses based on old news, which is known as the "dumb money phenomenon. “Within the first 15 minutes, experienced traders may be able to make some profitable trades. They also take advantage of exceptionally high or low price points to reverse the trend. The sector would look particularly unpredictable to beginners who have never heard of the stupid money phenomena or the tactic used by experienced traders to fight it. As a result, waiting for 9:30 instead of 9:15 is a better bet.
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Can I Make a Trading Decision Within the First Fifteen Minutes?
Intraday trading is best to conduct within one or two hours of the stock market launch. In India, however, most stock market trading channels begin broadcasting at 9:15 a.m. So, why not starting at 9:15 a.m.? Whether you're interested in learning more about Trading within the first 15 minutes will not be as risky if you are an experienced investor. It's better to wait until 9:30 if you're a novice. The explanation for this is simple: markets respond to the previous night's news in the first few minutes of the market opening.
Sharp price moves in one direction, often depicted in trades. People make their best guesses based on old news, which is known as the "dumb money phenomenon." Within the first 15 minutes, experienced traders may be able to make some profitable trades. They also take advantage of exceptionally high or low price points to reverse the trend. The sector would look particularly unpredictable to beginners who have never heard of the stupid money phenomena or the tactic used by experienced traders to fight it. As a result, waiting for 9:30 instead of 9:15 is a better bet.
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Trading at the Market's Opening
Volatility isn't a bad thing. After these initial excessive trades, the desired level of uncertainty for newcomers enters the market. As a result, the hours of 9:30 a.m. and 10:30 a.m. are perfect for making trades. Intraday trading in the first few hours after the market opens offers several advantages:
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The first hour is typically the most unpredictable, offering lots of openings for the day's best trades.
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The first hour offers the liquidity needed to enter and exit the market. Since liquid markets have a more significant trade level, they are more likely to be sold off quickly.
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Securities purchased or sold in the first hour of trading have been seen to have some of the most significant movements of the whole trading day. It will have the best returns compared to other periods during the trading day if handled correctly. Losses will be huge if performed poorly.
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Transactions take longer and occur in lower amounts after 11 a.m., which is a poor mix for intraday traders who need to close their positions by 3:30 p.m. If you need more time, you can extend the session until 11 a.m. The tactic of restricting one's trades to the first hour, on the other hand, is best suited to day trading.
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Do have the big picture in mind.
The 9:30 to 10:30 range is not a hard-and-fast guideline that any trader must follow. In general, it designs for beginners, but it can be tailored to meet individual needs. It's a good idea to think about the big picture.
For example, in addition to using the correct period for intraday trading, remembering the day of the week is another tactic. Since the stock has traditionally continued to decline at the start of the trading week, Monday afternoon is always a decent time to invest. Experts advocate trading on Fridays, only before the Monday falls.
Furthermore, not every trader requires that the first hour filled with movement. Many that trade regularly during the day should opt for a shorter period. Intraday traders who only make a few trades per day, on the other hand, can choose a longer period. Seasoned traders are known to change their periods on various days based on how involved they are.
