Reasons Why Intraday Traders Lose Money In The Stock Markets Due To Closing Time

Intraday trading is not for the faint-hearted. The volatility and constant ups and downs of the market are probably the biggest reasons a lot of people fear trying their luck in the stock market. 

It is estimated that more than half the people who try their hands at intraday trading quit within the first year. The number that makes it beyond 3 years in the money market is quite low. First things first, you need to open trading account to start trading in Intraday.  

Instead of attributing setbacks solely to your luck, it’s valuable to introspect. If you wish to continue with intraday trading then you need to reflect on unsuccessful ventures, discerning where missteps occurred. A lot of people think that intraday trading is all about riding the wave and catching the trend, however, it is not as easy. 

As an intraday trader, you need to be well aware of the nuances of the market. A watchful eye on news flows, charts, support, breakouts etc. are all crucial factors when you trade. 

An important aspect of trading is the timing. In order to make profits, you need to identify the trends ad their time. 

A time frame is the time for which a trend lastsin the market. Ranging from a few minutes to weeks, time frames can be short-term, intermediate and primary. Please note that the markets can exist in different time frames at the same time. 

In India the stock market timing are from 9:00 AM to 3:30 PM. let us take a look at the time frames you can opt for during intraday trading:

• Trading on Opening

Typically the first half an hour of trade is the time when the markets are most volatile. The reason being overnight news and other set-offs are factored into the prices.

Trading during this time, 9:15 AM to 9:45 PM, is generally suggested for market veterans, who know how to make the most of volatility and can strike bargains. As someone who is still new at intraday trading, it is best wait out this time.

• Trading once fluctuations subside

This time is generally an hour after the market opens, i.e. around 10 AM to 10:30 AM. Stock market analysts suggest that the ideal trading time is between 10:15 AM to 12:30 PM, this is because by this time the volatility of the market typically subsides. The direction of the market ans even indices show more stability.

An ideal time for opportunities, at this time charts, patterns, and news updates hold significant sway in intraday trading. You should try to capitalize on this period to optimize your trading strategie. 

• The relaxed phase

The period between 12 PM to 2:30 PM is said to be a relaxed period in the markets. During this time the focus is more on news flows or specific events, trade closing in Asia and opening in Europe.

• The final phase

The final phase of the day is starts from 2:30 PM and goes on till close trade at 3:30 PM. out of all the intraday trading options,  the intraday closing time is said to be the most risky because as just one hour of the time frame is left so the fresh openings can be risky. Analyst often suggest that if you are into trading, especially as a novice, you should plan your closure position a little before 3:15 PM. 

Conclusion

As a trader, making the right move at the right time is very important. Make sure toi spend time and effort in understanding intraday closing time and opening time.