Day trading is a popular way to make money that involves buying and selling financial assets. Unlike investing, day traders Catch they parking for just a few minutes And make sure they close their trades by the end of the day.
Full time traders buy and sell dozens or hundreds of trades per day. On the contrary, investors hold their positions for a long time and tend to carry out some purchases in one month.
Therefore, traders and investors have different daily routines. In fact, many investors do nothing in one day because they have already set aside their money.
In this article, we’ll look at the macro areas that make up a day trader’s day (and routine).
Major market sessions
the US market usually It opens at 9:30pm and closes around 4pm. but, It is commonly possible to trade for longer periods Known for long hours.
Most importantly, day traders who focus on assets such as forex and cryptocurrencies can day trade at any time because these markets are usually open for 24 hours. Forex is open 24 hours a day, 5 days a week while the cryptocurrency market is open 24/7.
normal session
The regular session is A period when most people trade stocks in the United States of America. It indicates when the NASDAQ and New York Stock Exchange (NYSE) open their markets to traders. The regular session starts at 09:30 and ends at 16:00.
This is it The most active and most fluid session today. In most cases, all executed orders will pass in this session due to deep liquidity. This happens because most investors, including large hedge funds and investment banks, are usually active during this session.
the most important, All kinds of requests are usually accepted at this session. This means that you can open market and pending orders during the session.
A market order is the order that directs the broker to immediately execute a trade while pending orders direct them to open orders when the asset reaches a certain price.
Pre-market session
A pre-market session is a period that occurs much earlier than a regular session. This session is normal It opens at 4:00 am and runs until 9:30 am. It is an important session where people who are not in the regular session can trade.
This session is famous for Setting the tone for the rest of the trading day Because it includes the news that happened in the night session. For example, companies that release results in the after hours and early morning tend to take some fundamental market action.
After hours
The session occurs after business hours exactly when the market closes. He. She It takes place between 4pm and 8pm From every Monday to Friday. The aim of the pre-market and after-hours session is to give investors and traders an opportunity to trade for longer periods of the day.
there Three major caveats for pre- and post-market hours, which are collectively known as extended hours.
- These sessions tend to have lower volumes compared to the normal cycle. As a result, the Transfer expenses could be higher.
- in the two sessions, Market orders are not allowed. Instead, traders are required to place pending orders which are executed when the market opens,
- Not all stocks are available During the pre- and post-market hours. As such, your preferred asset will likely not be available in these sessions.
Related “ How to trade part time
How to manage your day as a day trader
There are many strategies you can follow to become a better trader. At Day Trade the World, we work with thousands of traders every day. In the past two decades, we have noticed many strategies that traders use to manage their time well.
Find your sweet spot
The most successful traders Find they nice place during the trading session.
Someday, traders are most successful when they focus long hours. Other traders do well when they focus on the first few hours after the market opens.
Therefore, we recommend that you find your sweet spot and work to maximize the opportunities. Day traders usually prefer the first hour (“open”) and/or the last hour (“near’) because they have more liquidity and volatility.
Use a trading journal
The other important thing we see is the use of a trading journal. As the name suggests, a journal is a document in which you write down all the details about your trades.
Some of the most important details to include in the journal are:
- assets
- Trade execution time
- The reason for opening the trade
- Deals awaiting execution
The benefit of having a trading journal is that It will keep you disciplined when trading.
Use the watchlist
One of the ways that will help you save a lot of time when day trading is to use a watchlist. A watchlist is a file availability document Summary of the main driving factors In the market.
At DTTW™, we offer a free watchlist that identifies the top movers and the reason for their movements. Having this watchlist will save you time in your search.
Take some time to rest
There is always a file Serious business risk. For example, it is easy to go through diminishing returns. This is when your success in a session starts to wane.
Also, there is a risk that you will catch up on too much information during the session. We always recommend that you take some time off. You can play a game, read a novel, or even watch a movie while relaxing.
Trading commission
If you are trading on a trading floor, we recommend that you always start today Meet other members from Earth.
The purpose of such a meeting is Make sure to share ideas About the market and some business opportunities. Sometimes you can make this meeting when the market starts to cool down during the normal session.
summary
This article looked at some important aspects of day trading. In it, we saw Time management concept And The three periods in stock trading. Specifically, we looked at the before and after regular trading sessions and how to take advantage of them.