What is the best time of day to trade stocks? The answer may surprise you.
The best time of day to trade stocks is not at market open for the average amateur trader. Professional traders will often fade stocks at market open. For example, if the market gaps up and rises, professional traders will short the market for the anticipated move down. If the market gaps down and falls, professional traders will go long the market for the anticipated move up.
Let us take a look at a trade I made today, and lost 5% on for not respecting the best time of the day to trade rule. The best you can do is limit your losses with a disciplined stop loss and then learn from your mistakes. A wise trader will learn from the mistakes of others so that he doesn’t make the same mistakes.
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