Managing your Time as a Mobile Trader

This is the transcribed version of the podcast linked above ^^^

MATT: [00:00:01] Hey Matt here, from the One Minute Trader, we’re going to be releasing sporadically: our listener mailbag. What I mean by that is we get a lot of e-mails. And you by the way you can send those also to me directly. [email protected] A lot of these e-mails ask the same questions that we hear from clients over and over again so we’ve put together a series that we’re going to call one minute trader listener requests and we’re going to answer questions during these session and we hope you like them. Thanks for listening to the One Minute Trader podcast. And as always keep your questions coming. I’m Matt Davio and this is the One Minute Trader podcast.

 

BRINT: [00:01:11] When just starting out what is the best way to manage my time as a mobile trader?

 

MATT: [00:01:17] So a lot of people will come to me and ask: “I don’t have a lot of time, I have money, I want to put to work. I don’t necessarily know the best thing for me to trade. As far as asset class whether it’s stocks, options, bonds, futures, Etc. or I get a question here I can only trade during lunch or I can trade overnight.” And really it really comes down to: When can you participate. And even if it’s inconsistently, when can you participate the most. I always tell people that if there’s 52 weeks you can take off two weeks right away for holidays. There’s usually 11 to 14 holidays. That are taken off the calendar every year. So you’re down to 50 weeks. And then if you look at the number of days that are really trade-able. You can automatically get rid of another let’s say 20 days. So you go from 50 weeks down to about 46 weeks. And that 46 weeks then if you take a holiday Fridays and Mondays days around holidays Memorial Day Labor Day, July 4th, end of the year. You take off another 20 days and now you’re down to about 42 weeks. So let’s just call it 40 weeks after all the holidays. Then you have FED days, you have about eight FED daysa year, we had one today matter of fact and what that means is the market tends to stop and pause for the Tuesday afternoon into the Wednesday afternoon session. When the Fed is meeting before they make their announcement on will they or won’t they raise rates or lower rates. When this happens, you can take away another 20 days. So you’re down to you know you go from a 250. Monday you know 250 Monday through Fridays down to about 180. And then when you really take away the holidays and the Fed days you’re down to about 150 actual trading days. So you’ve actually gotten rid of 100 days right off the back. Of that 150 days, then you have to look at what what time do you have to commit to the market. In other words can you treat in the mornings. Are you in Europe so you can trade any at any time because European hours are totally nights for working a full time job and then still spend time working in the U.S. markets. So really it depends on when can you be available when can you be in front of the screen. And then from there you need to you can start discerning when you can behave and when you can find opportunities and then I would break down the day from there. So each day really has a component and if you look at it every day the volume in any market whether it’s the U.S. whether its European whether it’s Asian markets. You have an open and you have a close and then you have this lull typically every day of day of trading. So you have kind of the first hour hour and a half the last hour and a half.

 

BRINT: [00:04:19] So I have about an hour hour and a half for lunch every day. But.

 

MATT: [00:04:23] What’s time’s your lunch?

 

BRINT: [00:04:26] It’s about 12 to 1 to 130.

 

MATT: [00:04:28] Where do you live?

 

BRINT: [00:04:30] Live out in Oregon.

 

MATT: [00:04:32] OK. So you’re on the West Coast?

 

BRINT: [00:04:33] Yeah. Yeah. So how does that affect my day and me trying to trade during Lunch?

 

MATT: [00:04:42] So it really depends on what you want to trade. Where you want to trade it from and how that market behaves during the hours. So, there’s three specific markets typically around the clock. You’ve got the U.S. market that opens at 9:30 Eastern or 6:30 Pacific. You’ve got the Asian markets which open at 6:00 p.m Pacific or 9:00 Eastern. And then you have the European markets that opened at midnight Pacific or 3:00 a.m.. Eastern. So if your lunch is between 12 and 1:00 Pacific that’s the closing of the U.S. markets. That is a great time to trade. Typically again markets will move the open and the close. The most you’ll see the most moves whether they move up they move down or they move just sideways. That. Final Hour of the day is really the most important no matter what market you’re trading. So if you’re trading the Asian markets, that would be again around 12:00. a.m. to 1:00. a.m. pacific. Adjust your clock accordingly. If you want to trade the open for the European it’s 12:00 a.m. Pacific to 1 a.m. Pacific. So maybe you could look at two different markets both in an open and a close. Near the same time. So. If you have limited time find the time that works best. Oil, on the other hand trades around the clock much like the other futures do. But it’s really liquid in the U.S. markets. It’s really liquid in the European market. So it really comes down to two 12 hour markets kind of 12 to 12. 12 a.m. until 12:00 p.m. for Pacific Time. And then it goes 12pm to 12:00 a.m. would be the next of two sessions versus the U.S. markets, Asian markets, and European markets. So, The most effective time for crude is really again the opening hour, the closing hour. Crude happens to open in the pits in New York at 5:30. a.m. Pacific which is 8:30 so it opens a little earlier than say the S&P 500. So it really matters what you trade and when you trade it. It has to fit into: does that jive with what the market is doing, alright. It’s really important. If it doesn’t if you live on the East Coast and your lunch is 12:00 to 1:00 that’s the same time the floor traders, even though there aren’t many of them, take lunch. We’re still human beings even though there aren’t as many people trading in the pit. They still take their break during lunch. So you’ve got to step away when the rest of the world stops. Now sometimes it doesn’t do that because there’s something going on in the world. There’s a bomb being dropped or somebody is being grilled in the congressional hearings. Right? That will affect the whether or not lunch is busy. But those are more one-offs than they are the normal situation. So just like most people they take lunch in the U.S. markets usually for two hours. I tell people 12 to 2:00 Eastern. Adjust your clock accordingly. It’s really when you don’t want to behave and be participating because markets tend to be pretty flat. During those times. Now when they are active during those times are great times to trade. But I would say that’s more 20 percent of the time then the norm which is 80 percent of the time it happens on the open and the close.

 

BRINT: [00:08:24] So I’m trying to trade as much as I can, obviously, but do you think more hours and less days is more effective than more days and less hours?

 

MATT: [00:08:35] I say this no matter what you: do less is more. I mean. You really can for example. Crude every Wednesday at 7:30 Pacific there is what they call. The EIA numbers it’s a binary event where they release “we increase the production and the drawdown in crude or we decreased it”. So we either have more oil or less oil and the market reacts off of that every Wednesday morning, 7:30 Pacific. Everybody knows it’s coming. So again it kind of comes to a halt. People come running in and you see this like Up-Down and then decide which way it’s going to go after that. So most often, shorter term traders which, as a one minute trader we are, we’ll wait for that news because we’re just guessing. We don’t have any insight that nobody that anybody else has. So we have to wait for that news to be released. See the way the market reacts and then. Set a course of action after that.

 

MATT: [00:09:44] The One Minute Trader was devolved to bring you fresh trade ideas every day of every trading week. Make sure you go sign up for our invaluable One Minute Trader daily emails along with our five minute video emails to get timely insights into evolving trade possibilities. Let one minute trader be your second set of eyes for trade opportunities that may have passed you by. We appreciate you listening today to the podcast and we hope you’ll support the show by leaving us positive ratings on whichever platform you’re tuning in from. I’m Matt Davio and this is the One Minute Trader podcast.

 


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