Stock Market Trading and Stock Market Hours
Stock market trading is a centralized market where all the deals go in and out from one place. Unlike Forex market hours that open round the clock, stock market hours are limited. Once the market hours are over, you have to close all your transactions or else you may get into trouble and lose money the next day.
Stock market hours are rigid and it works 8 hours per day. However, owing to the unique feature of stock market hours all around the globe, one can easily trade during the working week when the market is always open at some or the other place in the world.
The best stock market hours to trade are when there is a heavy volume in the market. Usually the surge of volume takes place during the first and the last half an hour of stock market hours. So, it is wise to avoid trading during these periods for a novice trader.
Day trading focuses on short time frames. So, the time of trade is very important factor. In day trading, market volume and prices can go wild in the morning. However, opportunist starts in the morning to ride a trend. Skilled traders take advantage of this volatility and makes quick profits.
Usually, the middle of stock market hours in a day trading tends to be stable and calm. People will wait for further news and announcements. So, it is the right time for beginners to trade as this will give predictable returns.
The concluding hours of day trading witness high volatility and increase in volume again. Traders’ major trading time is around 2.20 pm to 2.40 pm as during this time frame; most of the moves reverse or gather momentum. Since, stock market hours are nearing close, traders become bit antsy.
Some may try to close some of their trades and some traders may attempt to join a late day rally. Trading before the regular stock market hours is called pre market trading. It opens at 7 am and concludes at 9.30 am.
Post trade show follow up is also equally important. It provides a leading indicator for next day trading activity. Even though stock market hours yields high rewards, it is considered very high risk, so be careful and earn high.