Just looking for some clarification on what it means when we hear that the Futures Markets ( Dow, S&P, NASDAQ, etc. ) are up 200 points ..... at 7:30 cst. ? Who is trading at this time, to make the Dow be up by 200 points , before the market has even opened ? Are these regular traders like myself who are placing trades ? And if you wanted to place a trade After the Market has closed.... Would it be " Safer " to place a trade anytime after 5:00 p.m. cst. Or would it be a safer, to place a trade at say 6 or 7 a.m. cst. , as the likely hood of a Gap Up or Down is less likey to occur ( and thus having the market blow through your stops ) This is a catch 22 , in that by leaving a trade on during the Evening ( when the Asian and European markets are open ) , the trade can make a big move either in your favor or against you . But so long as no major news or event occurs during that time ( as it did over these past few days in the Asian and US markets ), you " should " be ok . Emphasis on should But, by waiting till those markets ( Asian and European are technically done trading for the day), then placing a Trade on say CL, GC or the ES before the US markets open .... we'll say we place a trade at 7 a.m. , you're much Less Likely to encounter a major move against or for you , and or a big Gap Up or Down ) Got a bit off topic there I know lol Thanks for any and all input Always appreciate it
Anybody and everybody who wants to trade is trading. I am not sure the kind of trader you are but by guessing from your questions they are more sophisticated than you. There is no "safe" time to trade, trading is trading. I suggest you include the overnight session in your chart. The gap you are referring to is the regular session close to the next regular session open. However, between those sessions the futures continue trading, so there is no gap. There is no catch 22, either take a view or dont.
Pre-market is a moment where low-liquidity and private negotiations take place. So the market can move A LOT with little to no volume at all. Take a look: http://www.investopedia.com/financial-edge/1112/trading-in-the-pre--and-post-market-sessions.aspx
Thank you Gruber This is the kind of information I was looking for. I appreciate you posting the link
Your questions is about futures. European futures markets are not technically done for the day. They are still very active when the U.S. regular session markets open and on many trading days...just as active as the U.S. futures. In contrast, by the time the U.S. futures regular session opens...the Asia futures markets are done. I'm not sure what you mean by safer. Sounds like you have not backtested your trade method. If you did backtest your method...it will tell you when you tend to get losses versus profits. Simply, if your backtest results tells you that most of your profits occurs in a particular time duration...why would you not trade that time duration even if is low volume (less active) and trade more active time duration if your backtest results say you'll be less profitable ? Simply, backtest your trade method and let it tell you when you should and should not be trading. Next, simulate trade the best time period that your backtest results give you. If that goes well, then start with the minimum position size to trade with real money that time duration your backtest results gave you as the best time duration. Markets are high risk...no such things as "safe" time.