E-mini Trading can be a very profitable venture if done correctly and in this article we go over the worst times of the day to trade.
Maintaining consistent results as a trader means exploiting your edge over other participants and in e-mini trading there are times throughout the day when technical traders lose their advantage. Below we have developed a list of the best times to turn your focus away from the charts.
1. 4:15 pm EST – 2:30 AM EST
The hours immediately following the close of the trading floor can be very slow. Volume will completely dry up and the market can move at an incredibly slow pace. When the market does move it is often fuelled by overnight stop losses being hit and technical levels are often ignored making it extremely difficult to find high probability entries. Do yourself a favour and take time after the markets close to focus on other things. Give yourself time to come back the next day refreshed and relaxed.
2. 9:30 AM EST -10:00 AM EST
The first thirty minutes of the US market session can be extremely volatile. Intelligent traders know to stay out of these conditions and to let the market orders disperse before they look for quality set ups. The daily news is usually delivered between 8:30 AM EST – 10:00 AM EST which can also add to the volatility. It is best to wait for panic and fear to subside before making any reads on overall market conditions for the day.
3. 11:30 AM EST – 1:15 PM EST
The East Coast lunch hour can prove to be very slow trading. Traders are better off taking some time away from the computer so that they can come back relaxed and refreshed for the peak afternoon session.
4. 3:00 PM EST – 4:00 PM EST
The final hour of trading is an extreme version of the volatility seen in the first thirty minutes. Traders look to close out their positions as the bell approaches and fills become less and less solid. Extreme price swings are not uncommon and inexperienced traders can put themselves into very problematic spots if they initiate trades during the last hour.
Avoiding trading during these times will allow you to focus on the times that are consistently profitable. You will have more energy and more focus when you do take some time away and you will see the benefits in your profit and loss statements. Profitable e-mini trading means trading your advantage and at these times of the day there simply isn’t any edge to trade.
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