Intraday trading is all about the old saying "less is more". It might be wise to limit intraday trading to key hours, rather than buying and selling stocks throughout the day. For traders who trade with index futures, stocks, and ETFs, it has been proven that trading only one to two hours per day is more profitable.
Long-term intraday traders will benefit from finding the most optimal time frame. These hours are well-known for market activity and can be used to maximize your efficiency. Day traders who trade all day have very limited time and receive insufficient rewards. Even the most experienced intraday traders could lose their money if they trade in an unfavorable time frame for intraday Trading. The question is: What is the best time to trade intraday? The answer is between 9:30 and 10:30 AM.
Intraday trading is best when the stock market is open for at least two hours. However, the majority of stock exchange trading channels are open at 9:15 in India. Why not open your trading at 9:15 in the morning? Trading within the first fifteen minutes may not pose as great a risk if you're a skilled trader. Beginners should wait until 9:30. This is because stocks will likely react to news from the previous night within the first few minutes of opening.
Trades will often show sharp price movements in one direction. This phenomenon is known as the "dumbmoney phenomenon" because people make their best guesses using old news. Some trades can be profitable for experienced traders within 15 minutes. They often take advantage of very high or low prices and then reverse it in the other direction. The market can appear volatile to novice traders who may not have heard of dumb money or the strategies used by experienced traders to counter it. It is safer to wait until 9:30 than to jump in at 9:15.
Volatility does not have to be bad. After these first extreme trades, the ideal level of volatility is reached in the market. This makes trading between 9:30 and 10:30 am the best time. There are many advantages to intraday trading within the first few hours after the market opens.
For every trader, the 9:30-10:30 range isn't a strict rule. This range is suitable for beginners but can be modified to suit individual needs. It is important to see the larger picture.
In other words, you should not only choose the best time to trade intraday, but also consider the day of each week. Market traders often prefer Monday afternoon because it is the best time to buy, as historically the market has dropped at the beginning of each trading week. Experts recommend selling Fridays before the Monday-dip.
Not every trader has to spend the first hour of their trading day with activity. A shorter time frame is better for traders who make many trades per trading day. Intraday traders that only trade a few times per day may choose a shorter time frame. It all depends on how active traders are. Experienced traders may also switch their time frames on different days.