The First 30 Minutes of the Market Open
Many Pro traders know that the first 30 minutes of the stock market has the most volatility. The first 30 minutes can Make or Break the Bank. Throughout many articles, they warn newbie traders to trade after the first 30 minutes- when the waters are nice and calm and the trend is established. Truth be told, I agree to a certain extent. The volatility moves that most likely occur are due to GAPS or continuation trades and; with the Right Strategy the first 30 minutes is Beneficial.
My Strategy takes advantage of the first 30 minutes. Many ask what I base my trades off of and my answer is simple- Support/Resistance. The trade is either hitting a support (long) or is near a resistance (short)– I speak briefly about levels in this post http://www.tradesandtikes.com/levels-what-are-they/
Many New traders think the market moves up and down and trends all day, when in fact the market only trends on average less than 20%. So many times traders are getting chopped up or just watching paint dry.
The advantage of trading the morning open is time- Time to do what ever you may want after. The key to trading is not only the monetary compensation but the true value is time.
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