The best time of day to Day Trade #daytrading transcript

what's up everyone Ross here from Warrior trading here to answer a question in a little bit more detail about the best time of day to trade so I did a short on this topic and the short answer in less than 60 seconds is that the best time to trade is in the morning but I can add to that a little bit so when I started trading and this was 10 years ago more than 10 years ago I didn't trade before 9 30 ever 9 30 is when the Market opens and I would trade starting at 9 30 but it wouldn't trade before the open that's called pre-market trading I would generally trade the first hour to two hours of the day 9 30 to 11 11 30. and you know of course I learned all this through trial and error but one of the things that I found was that I was consistently losing money trading in the afternoon and overstaying my welcome it just was not the time I would do well and power hour for me never really felt like Power Hour I never found that I was consistently doing well going into the close even though I know there's some traders that like it it's never been the time of day where I've done well so I attribute this to a couple different things but one of the biggest is that my strategy is really based on trading stocks that have generally speaking news and news usually comes out in the morning you don't usually see big moving headlines like the type of headlines that can move a stock dropping at 11 15 or 115 or 2 in the afternoon usually you see them pre-market before the opening bell at 9 30 and you see them after hours after the closing ballot four and then of course they take place overnight as well so when I was earlier in my career we would have news that would come out at you know 7 30 8 A.M 9 A.M but the market wouldn't really react really pre-market was very light volume and then 30 a stock could go from having 150 000 shares pre-market to you know in the first minute of the day having a half a million shares go through and just it keeps going from there so Traders kind of really waited at the Starting Gate at 9 30. and some of that may have been related to Brokers not enabling pre-market trading or Brokers not having good platforms and of use for changing your time and force on orders so people just waited until the opening fell I mean even now I get questions all the time of how do I trade pre-market and for some Brokers you have to manually go in and change your time and force from a day order to an extended hours order which anyways so I you don't have to do that with the broker that I'm using orders just work from 4 AM until 8pm but in any case so then the pandemic happened and in 2020 what I started noticing was that burst of volume that would start at 9 30. started happening at like 9 25. you know stocks that were looking really good that I was thinking okay this is going to be a good trade at 9 30. it would start breaking out at 9.25 and I was like well son of a gun if I if I don't get in I'm missing it so I stepped up to the plate like I guess a lot of other people did and I said I'll trade it at 9.25 I turned into 9 15. and that turned into 9 A.M and 8 45 and 8 30 and 8 AM and now basically what happens is as soon as news hits the news wire and we have a news desk that posts news headlines in our chat room as soon as news comes out the market is reacting both high frequency trading algorithms that react to news headlines and then you know retail Traders like you and me who jump in and ride the momentum maybe buying the first pullback on a micro pullback by the way if you want to learn more about micro pullbacks I can put a link down below that you guys could check out I'm a big fan of trading micro pullbacks especially after breaking news because what's happening is the stock has had its initial pop which is often a high frequency trading algorithm it's now having a moment where the news is being digested by retail Traders and that moment of sideways and slight pullback creates a micro pullback that then if a stock is strong if it breaks the high of that previous level that's When We're Off to the Races so micro pullback trading is my favorite way to get in a strong stock as early as possible especially one that's just had breaking news so check out the link right down below to download my micro pullback strategy it's together it's a free resource so check that out so that's where we're at now and it's true that retail break Brokers like Robin Hood and TD Ameritrade they don't allow trading as of right now as far as I know before 7 A.M so between 4 AM and 7 A.M you know you do see some volume sometimes right at 4am and that's a volume from stocks that had news overnight and as soon as 4am hits you've got those European traders who are slamming the buy button and it's just like it was at the 9 30 opening bell you know years ago 4 a.m boom these stocks start ripping but that volume is pretty light I don't get up at 4am I have done it before during the Game Stop like you know crazy week I was getting up at 4 am and I was trading after hours and watching things until 8 PM that was the time where it made sense to dig deep and spend a little more time in the chair but right now I sit down so I'm watching usually around 7 A.M and then I can see if there's something at 6 45 that was a strong gapper and you know has news coming into 7 A.M when more retail Brokers come online I usually expect to see some follow-through if it's a second day continuation I have to be mindful that there will be some people that have been watching it pre-market from 4 a.m to 7 A.M that want to take profit they want to sell but their broker is not going to let them until after seven so you get some profit taking before it goes higher or if it goes higher they can also certainly fade so right now starting at 7 A.M I start kind of slow uh try to get you know a couple base hit trades onto breaking news I watch the top of the hour 7 A.M 7 30 8 AM 8 30 9 A.M and of course sometimes there's headlines that drop and during the pre-market session we have the opening bell at 9 30. a ton of volume that comes in right at 9 30 that first five minutes usually like peaking volume of the day for a lot of stocks and then the opening range starts to form and we find out whether or not the stock is going to be able to hold its pre-market highs and continue higher sometimes we get red to green sometimes we get pullbacks underneath V web and then we get a curl and they come higher so the window where I'm doing the most trading is between my most I'm sitting between 7 00 am and like 10 to 11 A.M but during that window I'm trading the most between probably 8 30 and 10 but 8 between 8 and 10. that's like my two hour window now if we have really strong pre-market action and it's really strong between nine and ten that's the day where I'm going to try to dig deep and keep trading until you know whatever it is maybe um 11 or 12 or 1 until things slow down um you know and likewise I may even trade a little bit into the afternoon but I rarely come back what I don't like doing is saying I'm done for the day and then coming back at like two o'clock and trying to trade through Power hour because I find when I do that I'm just I'm not I'm not in a good headspace I feel like not to compare myself to like professional athletes but um I I think about like a professional athlete who has the game it's game time they have their 90 minutes that they're playing or whatever it is and then they're like okay I'm done and they go and they relax and then they come back for like a second game later that same day like it's just sort of a weird um a weird thing I think it makes more sense to like focus on the area where you do the best in time and then when you're outside of that be totally done and come back tomorrow but it's important to be consistent so if you are someone that only can trade from you know 10 a.m till 2 p.m or something then that's your window and you do the best you can within that window and you you want to be careful dabbling outside of that when it's inconsistent because you'll have inconsistent results so this has been a little bit of a longer explanation of the best time of day to try to day trade I hope it's been helpful remind you as always my results are typical and there's no guarantee you'll find success whether you trade with me or you'll learn on your own so take it slow practice in a simulator before you put real money on the line and I look forward to seeing you guys over at Warrior trading all right see you guys soon