What Is The Best Time to Day Trade? A Time Period Analysis | Motilal Oswal
What Is The Best Time to Day Trade? A Time Period Analysis | Motilal Oswal

Time Period Analysis for Intraday Trading When is the Best Time for Day Trading

Intraday trading is one of the best ways to generate profits by leveraging the price movements of assets. That said, when day trading in financial assets, be it stocks, commodities, or currencies, it is crucial to pick the right time slot. But then, how do you do that? How does one know what the best time for day trading is? If this is a question that’s running in your mind, then we have the answer for that. In this article, we’re going to see what the best time for intraday trading is. So, let’s get right into it.  

  • When is the best time for day trading

To answer this question, we first need to understand how the stock market actually works. 

Now, have you ever witnessed the movement of the stock market as soon as it opens up for trade? If you have, then you would know just how volatile the market usually is. The price movement tends to be quite wild during the first hour or so of a new trading day. This is primarily because of a build up of the trade orders that are placed during the after market hours. Now, when the market opens up for trading, all of the pending after market orders are executed first, which naturally leads to a spike in the volatility. That’s why most experts advise against intraday trading during the first hour of a session or a day.   

Similarly, the last hour of trading also tends to witness a spike in volatility. This occurs due to the squaring off process of intraday trades. This is especially true during the last half-hour of the trading day. 

So, if the first hour and the last hour of the trading day witnesses increased amounts of volatility, when is the best time for day trading then? 

Many experts suggest that 10.15 AM to 2.30 PM is the right time to conduct intraday trading. Morning volatility usually tends to subside by 10.00 to 10.15 AM, making it the perfect time to place intraday trades. And going by this logic, it is a good idea to square off your intraday positions by 2.30 PM, much before the official square off timings of the exchange. This way, you can ensure that you don’t unnecessarily get stuck during periods of high volatility. 

Conclusion 

Now that you know when to start intraday trading, go ahead and try for yourself. That said, here’s something that you need to keep in mind. Make sure to use intraday trading tips and day trading strategies like scalping. This way, you can minimize your losses and make some quick profits.    

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Intraday Trading Explained | 20 things you need to remember when you trade intraday | Best Intraday Trading Tips and Strategy

 

Ready to invest with us?

Share your Mobile Number with us and get started

  • +91|
scrollToTop