Entry and Exit Points Vs. Time of Day

[nrs250 10]

I have been fairly successful (i.e. >75 %) when I enter a trade early AM/mid-day versus within 1st 30 minutes of the day.

 

I have found that stops of 1% of total portfolio have worked out well. It seems that that itself forces more discipline for entry points, knowing that an ill advised entry will get you stopped out prematurely.

 

I have used the following assumptions:

 

1) It is impossible to try and time the point of exhaustion for selling pressure when the market is trending down that day.

2) Taking the middle out of a move to the upside is OK (its OK to sell out a bit early and enter a trade a bit later that the exhaustion bottom on a selling wave as long as you take a chunk out of the middle). The trouble here is I often misjudge the level of buying pressure and sell out way too early..making money is making money but I need advice here.

 

3) Every move up is eventually followed by a move down and an opportunity for entry. I think others have said "there is always another trade opportunity". The times when I have let emotion rule and try and chase an entry point has almost always ended in getting stopped out.

4) I will not hold into earnings or big news... it totally screws my risk management plans because of gap downs the next day

 

5) I seem to gravitate towards 5-10 stocks and watch them. I can't get to know more that that and still keep my eye on the ball.

 

Any comments would be appreciated. I am new to this and would appreciate input on my assumptions and suggestions for improvement.

[Jene 10]

Basically, the "Pivot Point" is a way for traders to identify situations wherein it signals an entry or an exit of a trade.

 

New York open 7:00 A.M to 4:00 P.M

Japanese/Australian open 7:00 P.M to 3:00 A.M

London open 3:00 A.M to 11:00 A.M

 

The best time to trade is at the beginning 3.5 hours of starting times, because the major currency pairs tend to move the most in a particular direction normally when there are economic news releases

[BlowFish 10]

How are you currently timing it? Some sort of 'price action' seems the obvious way, maybe looking at volume too. There are a couple of simple bar (or candle patterns) that are pretty effective at indicating price rejection.

[brownsfan019 17]

It's all about what works for you and your trading setup. Personally, I love to trade the open of markets, look for my setup, ride it and get out. And it's creating a smoother P/L for me.

 

But trading is all about finding your rhythm and then working it to the fullest capacity.