In my last post, I bought some gold stocks. I’ve also traded other stocks today, but I’d like to point out something about mid-day trading. After the first hour and a half, you start to get into the time of day when trading action, and market patterns sometimes aren’t reliable, or too be believed. Mid-day trading antics is a good description. The XAU action in the 5-min chart is an example. I’m not really paying attention to this ugly drop here mid-day. What matters is how trading evolves during the last hour and 45 minutes.
I’ll borrow 🙂 Michelle B’s description of market action during specific times of the day for emphasis here;
‘1) 9:30 AM ET to 10:45 is a time of high volume, where usually a trend happens after a breakout in the opening range or consolidation.
2) 10:45 AM ET to Noon ET is when, following whatever trend that happened after the open, price will often consolidate during this time period on low to moderate volume.
3) Noon to 1:30 PM ET is when slow and steady trend continuing or reversals can happen on low to moderate volume.
4) 1:30 PM ET is when abrupt and pronounced continuation of trending or reversal on high volume can happen.
5) 2 PM ET (better known as POT) is also when abrupt and pronounced continuation of trending or reversal on high volume can happen.
6) 3 PM ET is yet again a possible time for either a high-volumed, abrupt, and pronounced continuation of trending or reversal happening.
7) 3:30 PM ET, yup, you guessed it, this particularly tricky time can trigger a very abrupt trend continuation or reversal on high volume.’
This mid-day antics trading can be emotionally nervewracking if you’re staring at your screen constantly. A snippet of Maoxians dummy trading advice is a prudent way to avoid getting emotionally involved. Maoxian often advises you stop trading after entering a stock or at lunch time. Heck, get a bite to eat, or do some exercise even. Remember, I’m not talking about a total disregard for stops here. You must follow those, but know what time of day is the best trading for you.
next day edit… see the result