Best time to trade - Bear Market Trader
How do you determine when the best time for trading is?

Best time to trade

When is the best time to trade?

When is the best time to trade? This is some­what of a per­son­al ques­tion. I believe it depends on a few cri­te­ria. Where are you locat­ed? Where is the exchange locat­ed that you would like to trade on? What kind of a trad­er are you (ie. scalper, day trad­er, swing trad­er, or a posi­tion trad­er?). The first two are impor­tant to answer, the third one as well although you might not know at this very moment what kind of trad­ing suits you best. So before we get started….


Like you, prob­a­bly, I am learn­ing how to trade. I don’t claim to know any­thing. What I do claim is that I will be a suc­cess­ful trad­er. I am con­fi­dent that I will be one because I am putting in the time and effort. If I can’t become one, it’s because the game is rigged and I was nev­er able to be good at it any­way. And basi­cal­ly the bot­tom­line is… It’s nev­er my fault 🙂 


Obvi­ous­ly, I don’t believe this.

This series of posts are my per­son­al approach­es to under­stand mar­kets and trad­ing and in the end my path to suc­cess. So if you can be hon­est about your sit­u­a­tion as I can be about mine, we can do this togeth­er and get crack­ing. If ‘they’ can do it… We can.

After all, you can’t be a good trad­er if you are not com­plete­ly and bru­tal­ly hon­est with yourself.

This series is called ‘The Hon­est Secrets to Trad­ing’. I call it this because Yes, it is a ‘click­bait’ thing. Part­ly. How else can I get your atten­tion amid all these oth­er guys. But I also call it this because I will show you in all hon­esty what my approach to learn­ing this craft is. Because I am look­ing for these secrets as well. Just like you. I am putting in the time. Are you?

Gen­er­al­ly, you will find a com­mon theme through my arti­cles and that is GOOGLE for your­self. Don’t know a term that I’m talk­ing about? GOOGLE it. I’m not here to tell you all there is about trad­ing. I am here to tell you how I learn and how you can start learn­ing by your­self. I hope you can appre­ci­ate that. 

Here it goes…

Loca­tion Loca­tion Location

As the terms in real estate goes, it’s all about loca­tion loca­tion loca­tion. Well, not quite the same for trad­ing but it is impor­tant. I hope you know where you are locat­ed so you at least have one part of the equa­tion dealt with. Now find out where the finan­cial instru­ment you want to trade is being trad­ed. In my exam­ple I am going to use WTI crude oil because that’s what I trade. 

A sim­ple Google search ‘where is wti crude oil trad­ed’ tells me it is being trad­ed on the New York Mer­can­tile Exchange (NYME) as an under­ly­ing futures con­tract. How­ev­er because Forex and com­modi­ties are not bound by the trad­ing hours of the New York Mer­can­tile Exchange, I can trade these futures con­tracts 23 hours/day 5 days a week as I men­tioned in anoth­er post before.

For me it means it’s a bit eas­i­er to trade since I am not bound by con­ven­tion­al trad­ing hours. Let’s say I were to trade stocks on the New York Stock Exchange I would have to be trad­ing them with­in its trad­ing hours. Which would make it more dif­fi­cult since if you are not locat­ed in the same time zone (or at least close to it). 

Now fig­ure out what your time zone is and that of the mar­ket you would like to trade. Now you have the time range fig­ured out that you can be trad­ing in. 

Rush hour

Know­ing when the store is open is just anoth­er part of the equa­tion. Where some peo­ple would try to avoid the big mobs head­ed to the store, oth­er strive. I know. Doesn’t make much sense right?! Most peo­ple like to avoid the busy­ness of shop­ping if they can. In trad­ing how­ev­er, that’s what I am look­ing for. We call it volatil­i­ty. The big­ger the volatil­i­ty, the more action. And oh man!!! We LOVE action. Well, I do. 


So how do you go about fig­ur­ing out when those rush hours are? Well, I took the longer road think­ing I would be onto some­thing. It turns out that I could have done it eas­i­er. Hav­ing said that, there are def­i­nite­ly valu­able insights to be had from look­ing at past price action. I looked at ana­lyz­ing what I call the ‘big rever­sals’. Read here on how to ana­lyze his­tor­i­cal price action and here on under­stand­ing the big rever­sals

The short­cut

Take a look at the week and observe when big moves hap­pen. Or, look for news events that can influ­ence your finan­cial instru­ment and look for cor­re­lat­ing price moves in the charts. Take note of these and get on with build­ing your trad­ing sched­ule around them.

Make a trad­ing schedule

Now that you have deter­mined where and when you can trade, you can now go and put togeth­er a trad­ing sched­ule. I like high volatil­i­ty so that is what I am going to base my trad­ing around. You have to deter­mine that for your­self. Because I trade crude oil futures I like to trade around the reports from the Amer­i­can Petro­le­um Insti­tute and the Ener­gy Infor­ma­tion Admin­is­tra­tion. See what fac­tors influ­ence your trad­ing game and try to sched­ule around it. 

Kinds of traders

So I talked about the dif­fer­ent kinds of traders. The scalper basi­cal­ly gets in and out a posi­tion in mat­ter of sec­onds to min­utes, a day trad­er opens and clos­es them, as the name sug­gests, with­in the day. A swing trad­er takes trades that last a few days to weeks. Last­ly a posi­tion trad­er is a trad­er that I like to look at as more of an investor. The posi­tion trad­er will hold trades for a longer peri­od of time. For more infor­ma­tion please go here

Why does this mat­ter to your trad­ing game? I think it’s plau­si­ble to believe that your time frame strat­e­gy is some­how relat­ed to your trad­ing sched­ule. Again, this is for every­one per­son­al­ly to find out.

Play­ing Chess

How­ev­er, there are dif­fer­ent ways to build your strat­e­gy around it and I’ll def­i­nite­ly go into deep­er in anoth­er post. What I can tell you now is that I com­pare trad­ing to a chess game of sorts. Any giv­en week is deter­mined by a few fac­tors that give the trad­ing game a cer­tain set­up. Just like in a chess game, there is an open­ing, mid­dle and end game. These all require dif­fer­ent strate­gies for trad­ing them. Like I said. I’ll dive deep­er into this in anoth­er arti­cle. If you would like to be kept up-to-date, please sub­scribe. Or not. I’m get­ting back to my chess game. Or trad­ing game. Whatever 🙂 

Thank you for reading

Please sub­scribe if you haven’t already. Let me know what you think in the com­ments below. Unleash your neg­a­tiv­i­ty upon me! All good. Thanks for read­ing and hap­py trad­ing to everyone.


Day trader. Tech geek. Sim Racing Enthusiast.

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