Which Time Frame Is Best For Day Trading?
Many forex traders and stock traders will recommend you to start day trading, but what is the best time frame to day trade? Some intraday traders trade at the beginning of the day.
Some of them are used for trading financial instruments in the last few hours of the market. So day trading for beginners becomes a confusing thing.
You may ask expert traders about the time frame. But all of these market makers will tell you a different time frame. So what is the actual answer when you ask which time frame is the best for day trading?
To find an answer to this question, we are here with this post. Here we will tell you how you can choose the best period for day trading. No matter if you are in the stock exchange market or foreign currency market.
The information in this post will help all of the traders out there in day trading. The main goal for all the traders is to make their day trading profitable.
Understand Day Trading Before Choosing Time Frame
A day trader needs to know about the best time frame before they trades. But it is more important to know the basic but important things about day trading. There are many things to know.
Here we will tell you a few things about day trading, and after that, we will tell you how to get the best time frame for day stock trading. You won't learn how to trade as an intraday trader. But you will know how day trading works and how to choose the best time for day trading.
The general definition of day trading is to buy or sell on the same day. It is a day-long trading session. There is a no different trading system, trading account, or different technical analysis for day trading. But there is a different trading plan used for day traded assets.
In other trading types, you buy stocks or currencies and then hold them for a long time frame. And when it comes to day trading, you just buy and sell on the same day.
Day Trading Strategies - Different types
You have many options when choosing a day trading strategy for you. A trading course can help you understand the various trading strategies used in day trading systems.
You can trade stocks, forex with these strategies. You can use all of these day trading strategies in almost any trading account.
- High-frequency Trading
- News Based Trading
- Range Trading
Why Is It Important?
You may wonder why we are talking about the day trading strategies because the question is about the time frame of day trading. This is the question that is to be answered. But before you choose a specific time on a trading platform for day trading.
You must need to know the types of strategies. You want the best time because you don't want to lose money while trading stocks or other financial instruments.
Understand Trading Trading Charts
There is something more important to know about online trading. We are talking about trading charts. No matter if you are a day trader in forex trading or using short term trading for the stock market. Understanding the charting, candlestick movements, and other things about day trading are important.
A trading course will help you easily read some common trading charts, as mentioned below. They are important because they are also related to the time frame. Following are the four common trading charts you must know.
- Intraday Chart
- Daily Chart
- Weekly Chart
- Monthly Chart
Choosing The Best Time Frame
Suppose that you are a forex trader who wants to make money trading currencies. You need to understand the best time frame during live trading to buy or sell a currency pair. It is important to know if you want to trade for a living.
Opening of The Market
When it comes to the best time frame to day trade, then the opening time comes first. Day traders always utilize the market opening time. Let's find out some of the facts related to the opening time.
The First Two Hours
According to the Short term market trading experts, the first two hours of the market see a huge fluctuation. And a day trader can get more benefit during these two hours. However, you will need to be an expert in trading psychology if you are a day trader.
The First Fifteen Minutes
The fact is if you are a day trader, you should only speculate during the first fifteen minutes because there is an influence of the past performance and past news of the market on this time frame.
Dumb Money Phenomenon
If you want to learn to trade using a day trading software or technique, you must know this phenomenon. During the first few minutes, the market will see dumb money fluctuations. These fluctuations are so fast and significant. But never react in this time frame.
Benefits of Market Opening Time Frame
As a day trader market, opening time is good for you because you will see a huge uptrend and downtrend movement.
No matter if the market is bearish or bullish, you will see huge fluctuations during the opening hours. So you can utilize this time frame to make profits in your day trading.
Best Days To Buy or Sell In Day Trading
Other than the opening market hours, some days are fixed by day traders to buy or sell. This trading method is used by most of the active traders to make a lot of money trading stocks. Also, you can use it for trading forex.
- Sell On Fridays - Fridays are said to have the best time frame to sell assets.
- Buy On Mondays - Monday afternoon is known as the best time to buy assets because you will see a huge drop.
Always Keep In Mind Some Important Things
There are a few things that a day trader must keep in mind. Always remember that the time frame is not the only thing to consider. There are some other factors to be considered seriously.
If you don't consider all these methods, then no trading technique will help you. No matter if you are involved in money trading or making money with stock trading. Something more important is there than just market-timing. Following are these factors.
- Market Trends
- Stop Loss
- Your Capital
- Volume of Trading
Summary - Which Time Frame Is Best For Day Trading
If you want to adopt a day trading style to trade currencies or stocks, you must know the best time frame to day trade. But finding the best time is not an easy task. Because someday, investors trade during opening hours of the market, while others utilize the closing hours.
But you can find the best hours for day trading according to your capabilities. However, opening hours are always recommended for beginner day traders who want to learn day trade.
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