If you’re a short-term trader like me, then there’s a few rules you should know if you’re looking for an edge in the markets.
The truth is… the time of day you trade stocks matters just as much as which stocks you buy.
After decades of trading in the markets daily, I’ve discovered that volatility is almost always at its peak in the morning.
The timing for this peak makes sense.
After all, there’s a 17.5 hour gap from when the market closes at 4:30 p.m. to when it reopens at 9:30 a.m.
A lot can happen in that time.
News of earnings, a merger or an unexpected natural disaster…
These catalysts build momentum in one direction or another, and Wall Street starts preparing its moves for the next day.
In fact, a study from SSRN showed that more than 40% of daily volatility in the indexes is generated after trading hours.
This leads to the best opportunity to capture that volatility for massive gains.
The golden trading hour: 9:30 a.m.-10:30 a.m. ET
Right after the opening bell at 9:30 a.m. ET each trading day, a flood of new orders come in.
Traders are reacting to yesterday’s news, and the market is about to shift accordingly.
This is backed up by data.
A study from Quantified Strategies showed that the SPY Index sets its high or low about 62% of the time during the first or last hour of trading. It also showed that the first hour is when the markets are typically most volatile.
This makes early morning trading hours the best time for massive gains on short-term trades.
It’s also why the direction stocks take first thing in the morning is often the direction they head for the rest of the day. Giving you more opportunities to capture even greater momentum.
YOUR ACTION PLAN
While the best short-term trading opportunities happen consistently at 9:30 a.m. ET, the timeframe is only one part of the equation.
Exactly WHAT should you trade?
That’s what we’ll demo for you – LIVE and FOR FREE – this Wednesday.
You’ll see how our “Cash Code X” software detected buy opportunities on Palantir, Tesla and Carvana BEFORE they surged up to 1,200% in a year.