Day trading requires long hours of work, some stress management, a non-risk aversion, and the work is not always rewarded with a win. Knowing how to day trade is not something you can learn in a couple of hours. Visit the BBB’s page for Rockwell Trading for more details.
Before the opening of the market
Before the market opens, each day trader will look at the other stock exchanges and analyze the paper market to try to find out what the market will look like. According to Wall Street and the Nasdaq, day traders will try to determine what trends will occur the next day based on the previous day. An unfavorable Wall Street close, however, will have a greater impact than a bad stock market session in Tokyo.
The opening of the market gives people an idea of the trend to come given the representativeness of other markets in Europe and Asia. So, shortly before the opening, the day trader will place his or her orders on the market to take advantage of the opening bell. The day trader will have to wait until the last minute to pass their stock market orders.
Indeed, they must visualize the orders as close to the market opening as possible. One hour before the opening, the order book is in no way significant to the evolution of the markets.
Wall Street opens
It is necessary to know the trend of other markets because a fall in them could lead to a fall on Wall Street, which will lead to a reversal of other markets. Wall Street is the symbol of the financial markets, and the impact of the American market in other countries remain high. The opening of Wall Street is the beginning of a new session for many markets.
Once the ending bell has struck, the day trader will analyze his or her day’s operations and start analyzing the opportunities for the next day’s session. A good analysis of past trades will allow the investor to get to know each other better—a kind of debriefing of the day’s sitting. They will try to understand why he or she lost on this or that position, but also why he or she won in another position.