Many traders engage in short-term trade strategies because of how fast the profits come in. This type of trading is known as intraday trading. This means traders purchase and sell shares on a single day just in time before the stock market closes. Intraday trading aims to gain as many profits as possible through market indices. It is also popularly known as day trading.
Experienced traders make it a habit to practice intraday trade only within a few specified hours in a day. Rather than purchasing and selling shares all day, it is advisable to identify the most suitable session for practising intraday trade. In this article, we have explained what is the ideal time frames for intraday trading for both beginners and experts.
Most Suitable Hours for Intraday Trading
A lot of trade platforms in India officially start trading from 9:15 am. During the first few minutes of the stock market opening, the previous night’s equity updates respond. High possibilities of price changes appear during these first few minutes. Therefore, it is advisable that the best time for beginners to start trading is between 9:30 am and 10:30 am. During this one-hour duration, price changes would have been reduced significantly.
How Experts Choose the Perfect Time Frame for Intraday Trade
For many expert traders, choosing a specific session to trade does not depend on their methods or price nor on the market where they trade. Their choice of hours depends on their distinctive trade style. Investors who make many deals during the day would better be inclined towards a shorter time frame
On the other hand, investors who prefer more extended time frames execute one or two trades in a single day. These time frames can change depending on how functional the price is for each expert investor.
Merits of Trading at the Start or End of the Day
The best time for new investors to get into a trade session is 9:45 am to 10:45 am. It has also been proven that 2:30 pm to 3:15 pm is an optimal time frame to trade. However, trading shares during the first few minutes or hours after the market officially opens has been known to be advantageous because
- Many new trade opportunities arise during the first hour of the day. This makes the perfect session for making profitable transactions.
- Liquidity needed to enter and leave the market in terms of price is offered during the first hour. Due to the significant volume of trading liquid entities, they are sold out more quickly.
- A lot of investors take their positions for the next day during closing hours
Best Days of the Week To Practice Intraday Trading
Intraday trade sessions can be tailored to suit individual investors’ needs. Apart from mastering the critical hours to start share trade, investors also note the perfect day of the week when trade prices give maximum profit returns. Traditionally, the market tends to take a dip at the beginning of a new week. However, Monday afternoon is one of the best times to start buying. Expert traders advise that Friday is the best day to sell just before prices take a dip on Monday. Experts keep changing their time frame on different days depending on how aggressive they are on the intraday trade. Saturdays, Sundays, and public holidays the market remains closed.
Candlesticks and Intraday Trade
Most traders depend on the 5 minute and the 15-minute rule on the candlestick chart. These are the best options since intraday trade is mostly about various price differences identified on the chart. Candlestick charts track trade activities of the previous 5 and 15 minutes. If you keenly choose the exemplary chart, you get a greater chance to get maximum profits from your trade as a trader.
Two types of intraday traders
Intraday trade sessions are different for every investor. There are two types of intraday traders, as explained below.
- Day traders.
The focus of day traders is to trade shares in a single day. They are also popularly known as swing traders, and they make only 2 or 3 trades in a single day. They depend on price indicators on their day trades. The optimal trade charts for day traders are the 15 and 30-minute charts.
- Scalpers.
These investors’ primary focus is making multiple trades that come with small profits. They can trade shares up to 15 trades a day. They use a 3 to 5-minute time frame to optimize the trade sessions. The most suitable time frame is the bigger one when using candlestick patterns.
Conclusion
Beginner and expert investors must do thorough research and identify a trade session within a time frame that results in the highest profits in intraday trade. Once you are ready, pick out a time frame and utilize it properly to avoid significant losses. The phrase less is better is very relevant to intraday trade. This means it is better to spend a few hours trading rather than purchasing and selling stock all day.
Frequently Asked Questions
- Which Time of Day Is the Best To Buy Stock?
Consider the day’s pullback as the best time frame to purchase stock. Pullback means a few minutes after the stock market opens or when the pullback reverses. Traders need to perfect their timing skills on this.
- Can New Traders Take Part in the Intraday Trade?
New traders can participate in trade because of the abundance of resources during day trade. Margin facilities motivate the traders and give them exposure to higher positions in the stock market. Newbies can leverage intraday trade if they do it strategically.
- What Is the Top Intraday Trade Rule?
The first rule for the financial sector does not involve your emotions. A lot can happen during a trading day or session. Emotional thoughts can cloud judgment, making traders get losses.
