One of the many reasons why day trading as a way of making a living comes with a strong appeal for the majority of online traders is that you can do it anywhere and anytime. Neither do you need a manager to stand over you all the time, nor is there a boss constantly breathing down your neck.
You can indulge in online trading from home or even when you are on a commute or traveling. Thanks to the evolution of technology and the internet of things. Additionally, you can plan and assign your own working hours, days, and holidays.
Day trading comes with individual benefits for each online trader. Plus, it is an ideal profession for traders who do not enjoy the constraints of a traditional form of trading in any domain. That is why traders prefer online trading platforms such as Global CTB Review.
By its definition, day trading is the purchasing and selling of securities such as futures, stocks, currencies, and options within a single day. However, the core aim is to profit from the change in stock prices, i.e., the difference between selling stock price and buying price of the stock. The traders do not hold any position overnight, whether it is short term or long term.
Day traders always take positions and make the moves at the right time based on their expertise and analysis of the stock market and its various aspects such as probable price directions during the trading period or session.
They always strive to take advantage of minute price movements occurring within highly liquid securities. In this type of trading, they aim to buy the stock at their lowest possible prices and sell them when they reach an extreme peak within a compressed time frame.
If you are an online day trader, then you must know that selling and buying in any trading market is at its peak and the heaviest within the first few minutes as soon as the trade market opens wherever you are trading from and whichever platform you choose to trade on.
This is the time when the bulk of trading activity takes place because there is typically some major political or news event that can surprise the trading market as the news starts to flow in and affect the prices of the stock.
Why morning is the best time to Trade
There are several reasons, but the most important ones are as follows:
- More liquidity/volume
- More volatile
- More predictable moves, trends, and market behavior
Tips of Morning Trade
Here are a few tips for you to keep in mind when you are indulging in day trading first thing in the morning.
- Do not get emotionally invested in any particular stocks. Day trading is cut-throat and all about looking out for patterns that can help you determine when is the best time for you to enter and exit a trade and make substantial profits or cut down your losses.
- Keep yourself up to date about the latest news, development, and trends in the online world of trading. You can always subscribe to sources such as Global CTB Review for this. Now you do not have to stay glued to your television screens to get the news and updates. Just learn about how to read the economic landscape of the market and predict when the earning season will begin. This will help you maximize your chances of making potential gains.
- Do not forget to utilize the 1-minute or 2-minute or 3-minute charts since the trading actions are usually rapid and move fast during morning trading sessions.
- Engage hard stops to help avoid large losses.
- Always and only use limit orders and avoid market orders.
The starting time is usually the same, but you can decide when you wish to end your morning trading session. If you think you have made enough profits within an hour, you do not have to stick around and get on with your other chores or chose to stay and watch how the market behaviors play out.