Tuesday, July 31, 2007

Market Obversations From My Experience

Dinosaur Trader made a very smart observation and asked why does the market always move around 2:45Pm. Here's my opinion and thoughts on that:

The biggest market moves are made in the first 1/2 hour of trading and the last hour of trading. That's b/c that's when the big money is squaring off their positions. That's why they tend to be the most exciting times of the day. I would avoid a ton of small shitty useless losses if i only traded during those two key times. That's when the pros are trading very actively, trends get stronger, breakouts/breakdowns are more meaningful, volume spikes etc etc. All other times during the trading session is just account churning, commissions to my brokers, boredom, frustration and usually small losses that add up over time.

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