"What I will cover would have saved me 20 months of headaches if someone had told me day one...
"The first hour of trading provides the liquidity you need to get in an and out of the market. On average the market only trends all day less than 20% of the time...
"The one time of day which consistently delivers on sharp moves with volume is the morning..."
"Within the first 5-minutes you will see a number of spikes in both price and volume as stocks gap up or down from the previous day's close. This will often be driven by some sort of earnings announcement or pre-market news. This first five minutes is arguably the most volatile time of day."
"In today's world, there are way too many automated systems and retail investors all clamoring over pennies, stocks no longer move in a linear fashion where you can sit back and place your trades on cruise control.
"Since I trade, I know there are some of you reading this thinking, "I can make money all day". This is a true statement [but] the majority of people do not. You will see that around 11:00 am the volume just dries up in the market. This is because the institutional investors and hedge funds realize that there is far more work and risk to be had during the middle of the day than potential profits. The resulting price action when the true stock operators are away from their desk is basically a lot of sideways action."
"...I came across this great video from SMB trading where Mike Bellafore describes how some of his traders fight the desire to trade during the slow midday period..."
"I try to avoid stocks that are printing a lot of 2% and 3% candlesticks. Reason being, the stock will likely trip my stop loss order before I am able to realize my profit target."
"The first hour tends to be the most volatile, providing the most opportunity. Although it sounds harsh, professional traders know that a lot of "dumb money" is flowing at this time.
Dumb money is the phenomenon of people making transactions based on what they read in the newspapers or saw on TV the night before. The information these people are acting upon is typically old news. Their trades can create sharp price movements in one direction. Then professional traders take advantage of the overly high or low price and push it back the other way."
"Ideally, risk 1% or less of your capital on each trade. This is accomplished by picking an entry point and then setting a stop loss, which will get you out of the trade if starts going too much against you."
https://www.thebalance.com/day-trading-tips-for-beginners-on-getting-started-4047240
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