The Best Time to Trade
"Trade like a mercenary guerrilla. We must fight on the winning side and be willing to change sides readily when one side has gained the upper hand." - Dennis Gartman
Back on March 3, 2010 Credit Suisse published a chart showing intra-day trading volume and volatility. Both volumes and volatility follow a similar pattern intraday - high at the open/close and lower mid-day. However, volatility seems to be skewed towards the open while volume is skewed towards the close. So when is the best time to trade?
I guess that depends on what kind of trader you are and what you're trading in. Some traders prefer lots of volume with lower volatility, which would suggest the best time to trade is towards the end of the day. Ultimately, the author (Ana Avramovic) suggests there may be no best time to trade for a variety of reasons.
At Bell Allard Delcourt Asset (BADASS) Management we're very disciplined about when we trade: intra-day, intra-week and intra-month. If you'd like to learn more, give us a call.
GB
Back on March 3, 2010 Credit Suisse published a chart showing intra-day trading volume and volatility. Both volumes and volatility follow a similar pattern intraday - high at the open/close and lower mid-day. However, volatility seems to be skewed towards the open while volume is skewed towards the close. So when is the best time to trade?
I guess that depends on what kind of trader you are and what you're trading in. Some traders prefer lots of volume with lower volatility, which would suggest the best time to trade is towards the end of the day. Ultimately, the author (Ana Avramovic) suggests there may be no best time to trade for a variety of reasons.
At Bell Allard Delcourt Asset (BADASS) Management we're very disciplined about when we trade: intra-day, intra-week and intra-month. If you'd like to learn more, give us a call.
GB
Labels: Trading
posted by Gordon Bell at
12:56 PM
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