Early Morning Quick Trades
Many traders wonder if is it a safe thing to take the trades in the few minutes after the market opens? The first few minutes are very volatile and this is where you see one of the biggest market movements. But new traders tend to shy away from taking this early morning trades because these trades are very fast to catch hold of.
The early morning trades are very quick trades and you need to be very efficient to take them. But these early morning trades also give you some great opportunities to make money and get out of the trade fast.
How the early morning trades should be taken
You will notice that in most cases the trade opens into a demand or supply level. It gaps up or down from the previous close price and then opens in the intraday demand or supply level. This gives you some great opportunity to trade as soon as the market starts. These trades are also very fast and the price reaches the target almost in minutes. Thus you do not have to wait for the whole day to see the trade working out. This means the real morning trades very helpful for those who do not have the time to sit in front of their monitor the whole day looking for trading opportunities.
The only problem is that these trades are pretty quick and thus you need to make decisions very fast. You should be able to enter or exit the trade within seconds and thus you need to know how to be calm and press the trigger immediately.
How do you analyze the early morning trades?
The best way to analyze the trades that you are going to take the next day is to check the market close on the previous day. You could go through all the stocks on your radar at the close of the trading session the previous day. Then look at those charts that have closed close to the demand or supply level. There is the very high probability that these stocks would open in the level.
Place some alert tools on your trading platform and then when you hear the beep on the next day you can just go and place a trade on those stocks.
A word of caution
Make sure to check that there is no news on the stocks that you have on your radar as well as no major economic news in the day because the market could move very haphazardly on those days.