First hour trading - simple strategies for consistent profits

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first hour trading - simple strategies for consistent profits

Simple Scalping Strategy For Consistent Daily Profit. On the downside, traders are required to be adept in entering and exiting the markets while at the same time paying attention to other factors such as leverage, position size and money management. Jul 21,  · In theory, waiting for a breakout after an inside bar or a tight range will often lead to consistent profits. The key thing to remember is to is the only window for opening new trades. If you place a trade at let’s say and you are trading the first hour, it only provides you 15 minutes to close your position. As seen from the screenshots, this system is not a Holy Grail of trading, as a matter of fact, there isn’t any Holy Grail of trading strategy anywhere. Every system has profitable and losing trades. But as seen above, in this strategy, the profit from the profitable trades is cumulatively greater than the losses from the losing yziwaqucuraf.tk:


Simple strategies for consistent profits in stocks trading by equityprofit - Issuu


External References Chapter 1: Why First Hour Trading The first hour of trading provides the liquidity you need to get in an and out of the market. Most new day traders think that the market is just this endless machine that moves up and down all day. In reality, the market is boring.

The one time of day which consistently delivers on sharp moves with volume is the morning. Assuming you are doing this for a living you will need some serious cash.

Assuming you were already thinking that, you need tens of thousands of shares trading hands every 5 minutes. Reason being, you need enough volume to enter the trade, but also enough that you can potentially turn around in a matter of minutes and close out the same trade you just put on. I have no study to back this one up, but from my own experience and talking with other day traders the 5-minute chart is by far the most popular time frame.

This will often be driven by some sort of earnings announcement or pre-market news. This first five minutes is arguably the most volatile time of day. If you are serious about your trading career stay away from placing any trades during the first 5 minutes. NIHD gapped up on the open to a high of 9. How do you think NIHD trended over the next hour?

First 5-minute bar Let me not keep you waiting too long. All of you advanced day traders will say that the stock continued lower because the stock had such an ugly candlestick on the first 5 minutes. Well, guess what, in this instance, you would be correct. You are probably saying to yourself, well I can place a buy order above the first 5-minute candlestick and a sell short order below the low of the candlestick. Sounds simple enough right? This is nothing more than saying to yourself that you are going to gamble your money within a defined framework.

While using simple strategies increase your likelihood of consistent execution, this approach is too unpredictable, first hour trading - simple strategies for consistent profits. Some traders will wait out the first half an hour and first hour trading - simple strategies for consistent profits a clearly defined range to setup.

I have noticed if a stock is going to head fake you, it will often do it at the 10 am hour. Another reason I like as the completion of my high low range is it allows you to enter the market before the minute traders second candlestick prints and before the minute traders have their first candlestick print. After the completion of the — range you will want to identify the high and low values for the morning.

The importance of identifying the high and low range of the morning provides you clear price points that if a stock exceeds these boundaries you can use this as an opportunity to go in the direction of the primary trend which would be trading the breakout.

Or you can go against the primary trend when these boundaries are reached with an expectation of a sharp reversal, first hour trading - simple strategies for consistent profits. Below is another example of the stock NIHD after it sets the high and low range for the first minutes.

High Low Range At this point, you have one of two options. Your first option is to buy the break of the candlestick and go in the direction of the primary trend. I believe when you see stocks b-line like this for the first 20 or 30 minutes, the odds of the stocks continuing in that fashion are slim to none.

I personally like a stock bounce around a bit and build cause before going after the high or low range. Your second option is to short the stock with the expectation NIHD will reverse around the 10 am time block. I am not a fan because you are just hoping the stock will reverse, but there is no real justification, first hour trading - simple strategies for consistent profits. So, looking at NIHD what would you do at this point? The correct answer is you should stay in cash.

Do you see how sizing up the trade properly would have allowed you to miss all this nonsense? Notice how the stock was able to shoot down and build steam as the stock moved lower.

In theory, waiting for a breakout after an inside bar or a tight range will often lead to consistent profits. The key thing to remember is to is the only window for opening new trades. Now there is no law against you holding a stock beyondfor me personally I allow my positions to go until am before I look to unwind. The key point is you get out of the mindset of letting your profits run. I honestly get visibly frustrated when I hear people giving this advice to new traders. Develop Your Trading 6th Sense No more panic, no more doubts.

The amount of head fakes and erratic behavior is just over the top. For me, a clear profit target is the best way to ensure I take money out of the market consistently. Each of these articles will clearly break down the importance of getting in a rhythm of taking profits.

The last 20 minutes of the first hour is not the time to hang out and see how things go. This is the time where you need to be on the lookout for closing your position and you must have some idea of where you want to close the position. The key thing is making sure you are coming from first hour trading - simple strategies for consistent profits place of wanting to pull profits from the market. Why am is a bad time 11 AM is a Bad Time Most of first hour trading - simple strategies for consistent profits reading this article will say to yourselves, this makes sense.

I should trade during the first hour when I have the greatest opportunity to make a profit since there is the greatest number of participants trading. This is a true statement. You can make money all day.

The only problem is the majority of people do not. You will see that around am the volume just dries up in the market. The resulting price action when the true stock operators are away from their desk is basically a lot of sideways action. Stocks will breakout only to quickly rollover.

Stocks will begin to move in one direction with nominal volume for no apparent reason. I came across this great video from SMB trading where Mike Bellafore describes how some of his traders fight the desire to trade during the slow midday period.

I may still have a few strands of hair on my head. Chapter 2: Just Settle Down Quality over Quantity Think about it, in any line of work, you want to follow the most successful people. You are in the business of making money, not working long hours, first hour trading - simple strategies for consistent profits. So, we at Tradingsim wanted to see if that study would still hold up years later.

The first thirty minutes is on average twice the size of the 10 am to am time slot. We did not perform a volatility test on these times, but you can assume where there is that much smoke, there is a fire. The one thing that was quite alarming is that the last half an hour is just monstrous. Learn to Day Trade 7x Faster Than Everyone Else To reinforce my point of not trading after 11, we compared volume from to 11 and 11 to 3.

This my folks is evidence that if you are trading during the middle of the day, you will likely give yourself a major headache. Reason being, you will need to find a needle in a haystack in terms of locating the trades that are going to move in such a dull market environment. If you get anything from this graphic, think of all the fun you can have from 11 am to 3 pm.

Walk your dog, hit the gym, get some beauty rest. Just do your best to stay away from your computer. If you cannot resist the urge for whatever reason, at least hold off until If you are day trading this presents another dilemma as you should be exiting your trades at 4 pm. This means you have less than one hour to enter and exit your trade. I do like the idea of having a set time to close the position, but you must yourself if you are really going to stay true to this rule. If there is any chance you could start holding trades overnight as a day trader, then focus on the first hours of trading.

There is more than enough action. Chapter 3: How Much Volatility is Enough? While the market open presents the greatest number of trade opportunities, you also need to determine the level of volatility you are willing to trade on the open.

While volatility is required to make money, profitable traders have a limit of what they are willing to trade. Reason being, the stock will likely trip my stop loss order before I am able to realize my profit target. Also, there is a greater chance I will end up in a blowup trade if things go against me swiftly. High Volatility 1 High Volatility 2 You can trade volatile stocks, but you need to reduce the amount you invest per trade to limit your risk.

If a stock is three times as volatile of your average trades, only use a third of your normal size. The reason I am touching upon these ridiculously volatile stocks is that they are available for you to trade. You need the discipline to avoid chasing the big win because at some point it will first hour trading - simple strategies for consistent profits in the blow-up trade.

However, pre-market data can provide insights into the trading range of a security. Why is this important? Well if you are buying a morning breakoutthe pre-market high can be your first target for the price move.

Conversely, if a key pre-market support level is breached, you can anticipate the pending move lower. Most platforms provide the ability to include pre-market data on the chart if you look at your chart property settings.

Buy the Pre-Market Breakout This strategy has been talked about on the Tradingsim blog quite a bit, first hour trading - simple strategies for consistent profits, but essentially you are looking for low float stocks that have the potential to make big moves. You can also trade big-name stocks, but you just need to be prepared to accept smaller gains. Wait for the Morning Pullback The other method you can use for trading the morning pre-market data is to wait for the first pullback.

This obvious advantage to this approach is that you can lower your risk by purchasing the stock at a lower price. Secondly, you have a clear exit target with the most recent high. Now what you will miss by excluding the pre-market data are the trend lines and moving averages that provide support for the pullback. Pre-market breakdown You can in the above chart the clear run-up in the pre-market, first hour trading - simple strategies for consistent profits.

 

First Hour of Trading - How to Trade Like a Seasoned Pro

 

first hour trading - simple strategies for consistent profits

 

First of all, need to be familiar with Forex trading, know Forex basics, and have trading experience as minimum months of daily trading. It doesn’t matter, you make profit or not. Main thing that you are able to trade, and understand Forex in general. Jul 21,  · In theory, waiting for a breakout after an inside bar or a tight range will often lead to consistent profits. The key thing to remember is to is the only window for opening new trades. If you place a trade at let’s say and you are trading the first hour, it only provides you 15 minutes to close your position. When you’re trading as many as five tradables, you can place 15 to 25 round-trip trades in an hour. But mastering this takes time. This strategy can put you in the poor house if you fail to implement it properly. Do not expect quick success. In any trading system, it takes time and hands-on experience to gain consistent profits.