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Best Time Slots for Intraday Trading
Jul 8, 2024
Best Time Slots for Intraday Trading
Market Hours Breakdown
Equity Markets:
Open from 9:00 AM to 4:00 PM
Regular Trading Hours:
9:15 AM to 3:30 PM
Post Market Hours:
3:40 PM to 4:00 PM
Important Terminology
First Half:
Refers to the earlier part of the trading day
Second Half:
Refers to the latter part of the trading day
Time Slots Not Recommended
Pre-Market and Post-Market
Lack of liquidity
Can only enter trades, not exit
9:15 AM to 9:30 AM (First 15 Minutes)
High volatility due to price discovery
Increased likelihood of stop-loss being hit
Psychological impact of early losses
3:00 PM to 3:30 PM (Last Half Hour)
Most brokers don't allow intraday orders beyond 3:15 PM
Limited time for trades to work out
Half Hour Before European Markets Open (12:00 PM - 1:30 PM)
Depending on daylight saving
Potential negative global sentiment
Recommended Time Slots Based on Strategies
Momentum-Based Strategies
Ideal Time Slots: 9:30 AM to 10:30 AM, 1:30 PM to 3:00 PM
Morning: Active retail traders create momentum
Last Hour: Institutional activity creates momentum
Mean Reversion Strategies
Ideal Time Slots: 10:30 AM to 1:30 PM
After initial moves, there's potential for reversion to mean
Gap-Based Strategies
Ideal Time Slot: 9:15 AM to 9:30 AM
Experienced traders only
Enhanced volatility requires smaller position sizes
Expiry Day Strategies
Days: Wednesday and Thursday (Nifty and Bank Nifty), Tuesday (FiNifty)
Ideal Time Slots: 9:30 AM to 1:30 PM (up to 2:30 PM with caution)
Avoid trading beyond 2:30 PM due to high volatility
Event-Based Strategies
Pre-Event: Avoid trading due to speculation
Post-Event: Wait 10-15 minutes before taking a trade
Never trade through the event
Other Strategies
Scalping Strategies
Broad term with various sub-strategies
Momentum-based scalping: 9:30 AM to 10:30 AM, 1:30 PM to 3:00 PM
Key levels or mean reversion-based scalping: 10:30 AM to 1:30 PM
Arbitrage Strategies
Independent of specific market hours
Opportunities appear randomly throughout the day
Not recommended for retail traders due to competition from algorithms
Conclusion
Many different strategies and time slots discussed
Understanding timing is crucial for successful intraday trading
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