Leisurely trading, 2

Cont’d discussion about Day Trade Part-Time

You can pick a time of day that best fits whatever strategy you prefer to use. Or in reverse, first pick a time of day that suits your lifestyle and then use a strategy that works best in that time slot. Here’s my understanding of what the authors of that book recommend for various time slots during the day.

9:30 am ET until 10 am. Best for short-term momentum trading startegies, especially strategies involving gap openings.

9:40 am ET to 10:20 am. Best for trading strategies based on relative strength and for trend reversal strategies.

10:20 am ET to 11 am. Best for strategies involving taking profits on very small moves.

10:45 am ET to 12 noon. Best for morning consolidation breakouts and trend reversal strategies.

12 noon ET to 1pm. Lunch.

1:00 pm ET to 3 pm. Best for consolidation breakouts.

2:00 pm ET to 4 pm. Momentum strategies.

3:30 pm ET to 4 pm. Best for riding momentum caused by swing traders opening or closing positions.

...cont'd tomorrow...

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