Analyst View: Correlation between Market Momentum and Timing in U.S. Stock

U.S. stocks' best trading time and operation suggestions in a day


I have seen many friends who are distressed because of midday trading (especially the situation where you can make money in the morning trading). In fact, these friends are usually traders who are suitable for trending or chasing the momentum. Said the others who swipe orders midday are their paradise. I am a momentum-chasing trader myself, and I used to make a lot of money in the early trading, but lost it all at midday, and didn't get it back until the end of the day. The phenomenon of falling money is very distressing to me, so I have summarized a set of countermeasures and share it with you here.



Personal suggestion:


1. Don't do it at midday, play some games, read a book and sleep, do whatever you want, just don't sit in front of the computer and look at level 2 and graphs. The changes in level 2 and the shaking of icons will make you have an irrepressible impulse to enter.


2. If you can't change it immediately, you must switch to a small number of hands. Even if you stop a few orders in a row, you won't feel very painful, will not erode existing profits too much, and will not affect your mentality.


3. Make orders at midday, try to rely on large orders or find a range to brush orders, try not to do large orders or make breakthroughs.


According to my personal experience, the trading volume is concentrated throughout the day and the trend is obvious (US time):

Opening at 9:30-11:30 with a clear trend and sufficient momentum. It is the best time for stocks to do in a day. Basically, you can make money by placing orders along the direction;


12:30-1 o'clock, there is often a wave of secondary trends that are relatively smooth, and you can often take advantage of the trend to make a small profit, but you must understand the nature of the trend at this time, not the main trend, just the continuation or callback of the main trend. Don’t be greedy, and don’t love to fight until the trend is over or the time has passed;


2:40-Trading is active again at 4 o'clock at the close of the market, and the stock has made a directional choice. If there is a big market after the morning, it must appear at this time, but it should be noted that some stocks may go through the main trend of the morning and midday. Consolidation, it will close in this area today. Don't subjectively think that all stocks will have a big market during this period. The key is to find the right stocks.


The rest of the time, stocks are basically undergoing consolidation. What we call midday generally refers to the period from 1:00 to 2:40, but in fact, the most terrifying period is from 11:30 to 12:30, and from 2 to 2:40. In the two periods, the former is the unfinished intention after the main market is over, and the latter is the eagerness before choosing the direction. It is characterized by volume and directionlessness. If the midday trading is light, we know that there will not be a particularly obvious trend. There will be no two-way loss, so in these two periods because of the large trading volume, we often draw on both sides.


Finally, I will give you two sentences and remind yourself at the same time.


Traders who don’t know how to avoid risks are not good traders. Excellent traders spend most of their time waiting for opportunities, and when opportunities arise, they will go all out.


Traders who set large positions at any opportunity will not understand the probability of opportunities


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