Market timing
Market Timing
The stock market operates
just like any other business you can think of. It opens its
doors everyday & takes the odd holiday too.
However market timing is very important
when deciding to make a trade, it could mean the difference
of making a fortune or losing your shirt. Below we’ve listed
the times that the markets open & close at but generally speaking
the main markets will start trading at 9.30 AM & close at 4.30pm.
You can also purchase
trading software which
will enhance your trading & make it easier to get market
timing right.Also the markets have what is called a pre-market
& after market trading session. Without getting into too much
detail here, this market allows traders to trade before the
general market opens & after it closes.
The general times for the pre-market are
8.00 AM to 9.30 AM
NASDAQ Trading
Indicators
The vast majority of traders will want to
know if the markets are trading well or poorly before they start
investing their money. The many who fail at trading will all
too often not even bother to check out the health of the markets
by using a simple tool like the
Moving average before they start to out on their
trading day.
The traders that stand to gain the most out
of the markets are the ones that put a little time into studying
the pre market indicators before hand.
For the
NASDAQ, the pre-market indicator is made up of a list of
100 securities & at what price they traded at before the markets
opened.
Professional traders will use this
same technique to examine the after hours sessions which occur
from 4.00 PM to 6.30 PM.
Chart courtesy of
StockCharts.com
NYSE Trading
Many traders will trade shares that
are on the New York Stock Exchange but not all the time. Most
will trade NASDAQ stock only as it’s a lot quicker for an electronic
trade to go through.
When trading on the
NYSE you could be waiting minutes for your trade to go through,
this time delay is of no use to day traders especially as time
is of the essence to these traders.
AMEX Trading
The same opening
hours apply to the
AMEX as to the other main exchanges. The AMEX is home to
the cubes (QQQQ). Many traders trade the NASDAQ composite because
they are nearly guaranteed lighting fast trades. Making a trade
on the AMEX should usually only take a second or two.
|
