A Variety of Random Articles and Insights Explore a World of Random Articles and Unexpected Insights
Related Articles
While trading in itself is considered to be an exciting exercise, intraday trading is described most ideal for someone who enjoys ‘living on the edge’. Here, every second counts and traders capitalise on short-term price fluctuations. Also known as day trading, intraday trading is one of the most popular types of stock market trading. Since the buying and selling have to be executed on the same day, intraday trading time can be a crucial factor to consider.
Budding traders often try to find a suitable trading time that can prove to be profitable. So, understanding the right time to enter and exit the market is of utmost importance. If you are looking for tips on intraday trading time, we’ve got you covered. Read on to learn more.
What is Intraday Trading?
Intraday trading is a type of stock market trading where the buying as well as selling of stocks has to be done on the same day. This means that irrespective of the type of intraday trade you perform, you cannot hold trading instruments overnight but can exit the trade on the same day. To practice day trading, you need a trading account. Learn what is trading account before you get into stock market trading!
Note: If you do not exit the trade by the market closing, your broker is liable to square off your trade by selling it at the market closing price.
Time Analysis: Intraday Trading
Intraday trading can be quite volatile and keeps fluctuating throughout the market timing. In order to make the right choice and enter and exit the market at profitable points, analysing the importance of trading time is crucial. There are various tools that you can use to analyse the intraday trading time like candlestick charts, relative strength index (RSI), or stochastic oscillators.
These tools give you valuable insights. However, it is the art of the trader to correctly analyse the price momentum and predict profitability. You may also analyse past data to understand how the market moves, how prices fluctuate, and how highs and lows take momentum. Usually, traders take the leverage of time analysis tools like the ones aforementioned to have a detailed understanding of the market movement.
Intraday Trading Time: India
The Indian market offers a fixed intraday trading time during which traders can perform day trading. On specific hours, the market can be quite volatile and offer liquidity, while on specific hours, the market can be seen at a stable pace. Here is the table showing the market opening and closing time for day trading:
| Trading time | Volatility | Liquidity |
| Opening Hour: 9:15-10:15 AM | High | High |
| Mid-day Lull: 12:00-1:00 PM | Low | Medium |
| Closing Hour: 2:30-3:30 PM | High | High |
In the above table, you can see that the market volatility is high during opening and closing times. This is because the traders’ reactions are high during this time. This means that during opening hours, a high volume of traders position themselves. At the market closing hours, traders square off their positions, which again results in high volatility.
Best Time for Intraday Trading
The goal of traders is to maximise their trading returns during the best market timing and with the right trade. For this, understanding the best time frame is also crucial. Now that you are aware of the market opening and closing hours, the next question that often comes to mind is what the best time to trade is.
There cannot be one simple answer to this query. The best trading time can be affected by various factors like the personal market understanding of the trader, risk appetite, market conditions on a particular date, trading style or a trader, international market news, and so on. The market seems to be highly volatile during opening and closing hours, while during midday, the execution of large orders is lower. So, you need to assess the market and your trading goals for the day to carefully choose the entry and exit time for the day!
In Conclusion
The market entry time is usually marked as one of the most profitable times. This is because large orders are placed at this hour owing to last night’s news and market analysis. Similarly, closing hours are volatile due to a heavy rush of traders aiming to square off their trade. Your own research and market understanding can be the driving tool behind your trading preferences. So, make sure you have an in-depth understanding of the market before you enter the intraday trading market!
