Many of us want to get into a trade as soon as possible – right when the opening bell rings. We want to start our day with a healthy trade and make cash from it. However, I always advise beginners to stay away from the first 30 minutes of trading…
Why should you stay away from the first 30 minutes of trading? Won’t you miss out on trades?
The first half hour is considered a “jungle”, because everyone is buying and selling rapidly which causes volatility. Certain stocks do break out higher, but most stocks will then retest those supporting levels and come back down.
What will likely happen is this: you will get into a trade; it will look like it’s popping higher, and then things reverse. People are adjusting their positions from the previous night, and it changes their minds. For this reason, the first half hour is very volatile.
The market will most often change direction in the first half hour allowing you to see the trend…
I want you to start looking again at where is the volume, I want you to start looking at what are the patterns that are being created, such as the lines of support, the lines of resistance. And once you start doing that, it’ll allow you to see t
If you’re trying to get in the first half hour, you may get stuck in a position and lose money. People hold on to the mentality of cheering on their stock to continue rising, but it can give you huge losses if things don’t work out.
Let the market digest. You still have another six hours in the trading day. If it’s a strong, healthy stock – it will continue strongly in time for you to trade!