STOP wasting your TIME - Best Time of Day to Trade

Summary

In this video, the speaker emphasizes the importance of trading during high-volume periods, specifically when U.S. banks are open from 9 AM to 5 PM Eastern Time. The key trading window is identified as 11 AM to 2 PM, avoiding the initial hour after the market opens to prevent losses from erratic price movements. The focus is on maximizing potential gains by trading when price volatility is at its peak, providing viewers with strategic insights to enhance their trading effectiveness.

Takeaways

• 📈 Trading when there's high volume is crucial; avoid times with little to no market activity.
• 🕒 The best trading times are aligned with U.S. bank hours, from 9 A.M. to 5 P.M. Eastern Standard Time (UTC-4).
• 🔍 Significant price movements typically occur between 11 A.M. and 2 P.M.
• ⚠️ Avoid the first hour of market open (8 A.M. to 9 A.M.) due to erratic price behavior.
• 📊 Focus on a three-hour trading window after 11 A.M. to optimize trading outcomes.
• ⏱️ Recognize that some days may have less movement; consistency is key in trading strategy.
• 🌍 Adjust your trading times according to your own time zone to align with U.S. market activity.
• 💡 Price movements often reflect liquidity gathering during the market open; be cautious.
• 🔒 Protect yourself from getting stopped out by avoiding choppy price action at market open.
• 💬 Engage with your trading community for support and to share insights on best trading practices.

Q & A

What is the best time of day to trade according to the speaker?

The best time to trade is during U.S. bank hours, specifically from 9 A.M. to 5 P.M. Eastern Standard Time (UTC-4).

Why should traders avoid the first hour of market opening?

The first hour (8 A.M. to 9 A.M.) often experiences erratic price movements, making it risky for traders due to attempts to collect liquidity before the market decides on a direction.

What time frame does the speaker recommend for trading?

The speaker recommends focusing on the three-hour window from 11 A.M. to 2 P.M. for more stable price movements.

How does the speaker suggest adjusting the chart time for better analysis?

The speaker suggests changing the chart time to UTC-4 to align with the market activity in New York.

What should traders be cautious of during Tokyo and London sessions?

Traders should be cautious of trading during the Tokyo session and pre-market London hours, as these times generally have less price movement and could lead to undesirable outcomes.

What is the significance of the dotted line marking midnight in New York on the charts?

The dotted line indicates the start of the trading day, helping traders visualize market movements in relation to U.S. bank hours.

Why is it important to know the opening times of banks?

Knowing the opening times of banks is crucial because that's when market activity peaks, leading to greater price movements.

What does the speaker mean by 'zigzagging wishy-washy' movements?

This refers to the unpredictable and often volatile price movements that can occur when the market is trying to find direction, particularly just after opening.

How can traders minimize their risk according to the video?

Traders can minimize risk by avoiding trading during the first hour of market opening and focusing on a defined three-hour trading window.

What should traders do if they have further questions or suggestions?

Traders are encouraged to leave their questions or video suggestions in the comments section for further engagement.