Wednesday, October 21, 2009

Morning Trading/End of Day Trading

So in the reading, it suggests to trade when trading is at its highest. I've found the very opposite to be true. When trading at high volumes, it increases the volatility, and although volatility increases potential return, it doesn't justify the risk in my opinion.

The largest volumes of trading seem to happen right when the market opens and right before it closes. So I'm going to avoid those times. I'll start my trading around 8:00am and end trading no later than 2:00pm. During these times I generally see a much more stable market..which still moves..but is much more stable.

I am attempting to fund my account this week...I am probably still not comfortable enough to trade live, but want to get everything worked out so that when I am ready to trade live, I can do it without any hiccups.

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