stillkicking
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I've talked about this before... but worth reiterating for all the new traders out there.
If you trade stocks on the American exchange there is a magic time you should know about and that is 9:50AM. It is at this point, give or take about 5 minutes, that most all stocks trading with more than their usual volume will have a turning point.
Stocks that looked like they were runners at the open may not look so great when 9:50 rolls around. It can be very hard not to jump on board with what appears to be a runner at the bell.... or pre-market... only to find it loses steam right at 9:50 and starts to either trade in a narrow range or sell off for the rest of the day.
If I'm smart and wait for the stock to settle at around 9:50 I, more often than not, am glad I did not buy earlier. From there I will wait for my favorite setup, discussed here. I can take the trade calmly without the need to rush to get in.
Food for thought.
If you trade stocks on the American exchange there is a magic time you should know about and that is 9:50AM. It is at this point, give or take about 5 minutes, that most all stocks trading with more than their usual volume will have a turning point.
Stocks that looked like they were runners at the open may not look so great when 9:50 rolls around. It can be very hard not to jump on board with what appears to be a runner at the bell.... or pre-market... only to find it loses steam right at 9:50 and starts to either trade in a narrow range or sell off for the rest of the day.
If I'm smart and wait for the stock to settle at around 9:50 I, more often than not, am glad I did not buy earlier. From there I will wait for my favorite setup, discussed here. I can take the trade calmly without the need to rush to get in.
Food for thought.
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