When to Do Intraday Trading?
And the biggest question that most market enthusiasts who do day trading is – when to Trade for the Biggest Profits During The Day? Yes, we couldn’t agree more that timing is essential. And we totally believe that every Intraday Trading must remain aware of the market to determine when it would be best to enter and exit. Losses can be substantial from a single poorly timed move.
Hence today we are diving into understanding more about how to use time to your advantage. And if you are just a beginner, kudos! You are really diving deep in trading but the first step for you would be to: Open A Trading Account.
Now for the fellows you are trading already: let’s get started!
Fortunately there are tools that can help traders determine the best time to trade in the market including oscillators (like the Stochastic Oscillator and Relative Strength Index (RSI) moving averages and candlestick charts.
Understanding the importance of each trading hour is crucial for traders because the market’s volatility, liquidity and possible returns are all greatly impacted by the different times of the day.
How Different Trading Times During The Day Affect The State Of The Market
This is a summary of how different trading times during the day affect the state of the market:
| Time Slot | Characteristics | Volatility | Liquidity |
| Opening Hour (9:15-10:15 AM) | High potential for quick gains due to initial market reactions | High | High |
| Mid-day Lull (12:00-1:00 PM) | Reduced activity, with lower volatility and trading volume | Low | Medium |
| Closing Hour (2:30-3:30 PM) | Increased activity as traders close positions, raising volatility | High | High |
- The stock market opens at 9:15 AM and since overnight news influences prices the first hour (9:15–10:15 AM) is the most volatile and has the best liquidity making it the ideal time to profit from quick gains.
- Around midday (12:00-1:00 PM) the market stabilises with lower volatility and trading volume making it less favourable for large trades.
- The final hour (2:30-3:30 PM) sees another spike in volatility and liquidity as traders settle positions and present more profitable opportunities.
Since the optimal time frame ultimately depends on trading style risk tolerance and market conditions it is imperative to examine historical trends and market patterns.
Over and beyond the usual day breakup, as an intraday trader you also need to understand the types of charts for intraday trading:
We are mentioning some chart types for you as a starting point of your research, let’s get to it.
Line charts are straightforward visual representations of the overall price trend that make it simple to identify patterns by connecting closing prices over time.
Bar charts are useful for examining price volatility and the relationship between opening and closing prices because they display the high low open and close prices for each time period.
Candlestick charts are widely used to show open, close high and low prices as well as detailed price action. This helps traders identify trends, reversals and market sentiment.
Conclusion
In conclusion, the first hour and last hour before closing are two of the best times for intraday trading but markets are usually layered to understand. You need to peel and understand each layer to understand what works best for you to make profits. And additionally, we encourage you to do your own research before you get into testing the waters for you.