Share trading is not limited to selecting the best stocks only. But, you also need to know about best time zones of the day for profitable share trading.
It will help you to gain success in this tricky game of stock markets for the next higher level. You need to develop a profitable trading strategy & stick to it until the right price & best time arrives to book profits.
Although, there is no sure-shot time rules that can be applied to every stock on every day. But, most of the stocks are likely to trade in this pattern.
In U.S, stock exchanges are opened for regular trading from 9:30 a.m. to 4 p.m. Eastern Time Monday through Friday. However, in India, stock exchanges are opened for regular trading from 9:15 a.m. to 3:30 pm IST Monday through Friday.
You can take tremendous advantage of trading time within a day to make & cut positions profitably. Once you are well aware of these market dynamics, you can lead others on any given trading session. Here are 10 stock market trading schedules or time zones of the day for profitable trades:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Pre-Market Trading Hours
It is one of the first & best time zones of the day for profitable share trading. Pre-market hours are those trading hours that occur before the opening of stock markets for regular trading activities.
In U.S., pre-market trading hours are 4 a.m. to 9:30 a.m. However, in India, pre-market session timings are 9 a.m. to 9:15 a.m.
This trading session is particularly designed for investors to judge the strength of stocks or analyze the general direction of stock market. In pre-market trading hours, stock volatility is usually driven by forces outside the regular trading session.
Some of the main drivers of price action in pre-market trading session include economic indicators such as employment data, gross domestic product (GDP), retail sales, weekly jobless claims; quarterly earnings; major news event; activities & volatility in future trading.
Traders & investors should always look for stock volatility during this trading phase. It can help you to determine possible direction of a security or overall stock index on a given day.
In U.S., you can trade during this time but your orders will be executed with slightly different rules. However, the hours, costs & procedure may vary depending on one broker to another.
This trading schedule is the best time for those looking to immediately react to news items as well as to trade at extreme price levels. However, you need to be well aware of additional risks associated with such trades.
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