The Worst Time To Trade The E-mini’s

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E-mini Trading can be a very profitable venture if done correctly and in this article we go over the worst times of the day to trade.

Maintaining consistent results as a trader means exploiting your edge over other participants and in e-mini trading there are times throughout the day when technical traders lose their advantage. Below we have developed a list of the best times to turn your focus away from the charts.

1. 4:15 EST – 2:30 AM EST

Directly after the close of the US session in New York is a period of extremely slow trading. In times of low volatility there can be drastic moves in price for no apparent technical reason. Price movement tends to be very slow during this period and traders are better off waiting for increased participation to ensure better fills and more intelligent trading. Take this time to remove yourself from the markets and focus on other things. Everyone needs a break every now and again and this is the best time to step away from the e-mini markets.

2. 9:30 AM EST – 10:00 AM EST

AS a profitable e-mini trader your job is to rely on trading high probability set ups. Technical analysis and trend identification are key aspects in making quality trade decisions. The first thirty minutes of the trading day are ruled by market orders. The individuals placing these trades often have large stop losses in place and are less concerned with actual fill levels and more concerned about missing a big move. Technical levels are often ignored during this early blitz period. Save yourself the commissions and focus on identifying the trend for the day.

3. 11:30 AM EST – 1:15 EST

The middle of the day often sees a drop off in volume. Traders have identified the market move for the day and have initiated new positions throughout the morning session. By the time lunch comes around they are content to sit and wait to see what happens following the afternoon session. As volume dries up so to does price movement and without volatility it is very difficult to find profitable trades. Take an hour or so to recharge your batteries and analyse the morning session. Come back with a plan for the afternoon.

4. 3:00 PM EST – 4:00 PM EST

Often referred to as the hour of madness the last hour of the day is seen by many as the single worst time to be initiating new orders in the markets. Avoid trading at this time at all costs. Price swings can be very violent and have absolutely no technical bearing whatsoever. If you are in a position you may want to tighten stops and look for an exit as the closing bell approaches. The closer 4:00 PM gets, the higher the number of market orders there are being placed, as traders climb over each other to get out of the market.

Do yourself a favour and work to avoid e-mini trading at these times. You may not see an immediate impact on your bottom line but over time you will save money on commissions and failed trades by waiting for intelligent market participation.

Do you have the skills necessary to become profitable at e-mini trading? Start learning today at the internet’s #1 source for futures trading education.

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