Practice Trading Stock in the Morning
If you are a budding stock trader you know that you have to practice trading stock in order to gain skill as a trader. One question that always seems to come up is what time of day is the best to practice stock trading? Day traders rely on technical indicators to determine when they will make a stock purchase or when to sell a stock. These indicators are very obvious in the first half hour or so of each trading day. The open price of a stock is nearly always different from the closing price of the night before (for high volume stocks). This difference often creates movement in the stock price for the first thirty to sixty minutes of the morning. This movement could be a correction in the price of the stock, or a sign that the stock is trending in the same direction as the price change from the previous night. Determining what may happen to the price of a particular stock is beyond the scope of this article, suffice it to say that there are plenty of opportunities to spot patterns in early day trading.
There is high volume trading in the last hour of the trading day as well. This volume is often from the big money accounts and fund traders. While there are probably plenty of opportunities in this time period, I prefer trading the open of the market. If you are looking to get into trading stocks more seriously, you should open a practice stock trading account and test the waters. Who knows, maybe you will find your best successes in the doldrums of the mid day trading. The point is to practice, and make yourself the best trader you can be. If you don’t put in the time to develop your skills, you probably will never be the stock market trader you want to be.
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