Why You Should Pay Attention To The Time Of Day

Sometimes, listening to the market means knowing when not to trade. If a high-probability trade develops during what is known as the "doldrums," that time of day when high-probability trades have less of a chance of following through, it's OK to take the initial trade. Just remember, if the setup doesn't "put you in the money" fairly quickly, it might be time to take a lunch break, just like the rest of Wall Street.

I considered the technical setup above worthy of entry, but considering the lunchtime hour, and not wanting to be the main course, I'm also very quick to realize when the trade isn't cooperating. Unfortunately for daytraders, all market hours are not created equal, in terms of participation. In this case, the downward momentum that might exist at other times during the day was being traded in for possibly some hot pastrami sandwiches. Upon exiting with lunch money still to spare, this was very quickly looking to be the better lunchtime trade.

Chris Tyler