Our body is designed to sleep in the dark and wake up in the early morning. Sleep helps your body and brain repair this all run according to our sleep induced hormones melatonin. Maltonine works and regulates our sleep-wake cycle which is regulated by circadian rhythm. Circadian Rhythm is also called the biological clock.
This internal clock works with light and darkness around us. When our work becomes our mission, our time is managed according to our profession. For the trade sectors, one has to move with the clock. So, a trader should manage their sleep and wake-up cycle? Yes, they must manage their trading time, style, routine, and the market opening and closing bell.
Why do traders wake up early in the morning?
For trading, you need to be fully awake and alert. For the best and most profitable results, a trader should wake up 3 to 4 hours before the market’s opening. The early morning market is more volatile and easy to predict, and with huge volume and liquidity. That’s why a successful trader always leaves bed more than any other.
A big volume with high opportunities always comes on screen from 9:30 to 10:30. It is a time when the New York and London markets start and overlap. So, this is the best time. Welcome morning means to welcome success.
Let’s move to check why traders wake up earlier than others.
Why Do Traders Wake Up Early In The Morning
Day traders have to profit by buying and selling the security within the same day by a difference in buying and selling price. For this, they must have a regular morning schedule. The morning schedule doesn’t mean how and when he should leave his bed and take a shower. This routine starts after getting up.
The US market opens at 9:30 am ET. During the first few minutes, the market has a great volume of trade. To take advantage of the bulk of trade, traders try to be more active and excited in the morning. This is the reason traders wake up early.
Why Do Traders Wake Up Early In The Morning For No Reason
Sometimes traders woke up earlier than their alarm. They can not understand why their eyes open so early. If you face this situation often there may be some reasons behind it. These reasons may be biological or environmental.
Biological Reasons
Sleep disorder reduces the time of your sleep. There may be many reasons, like bad health conditions, stress, or fear of losing. Your circadian rhythm is disturbed because of sleep disorder. You may get sleep therapy from a psychologist.
Environmental Factors
External factors such as temperature, loud noise, and light disturb our sleep. Sometimes a piece of news may also wake you up before your schedule. These environmental conditions can also trigger by some unusual happening like war, terrorism, or pandemic conditions.
Why Do Traders Wake Up Early In The Morning With Anxiety
Trading is a stressful job. Traders feel anxiety in the morning due to biological reasons. In the morning our stress hormone cortisol has maximum production. This may be normal for traders who cope with all conditions and make plans to control the risk
It is not appropriate to take problems on your head. You can reduce your tension through exercise, meditation, and a positive attitude.
Why Do Traders Wake Up At 4:45 am As A Forex Trader
Trading at 4:45 is a period of pre-market activities. These activities occur before the opening market. Many direct access forex brokers allow the traders to communicate to commence as early as 4 am.
If a trader wakes up at 4:45, he has enough time to listen to the news, check charts, and think about new strategies. Some currency pairs are best traded in the morning time.
The market is in full swing, in the first 10 minutes (9:30 to 9:40) morning. For better entry, you have to prepare for it.
Why Morning Is the Best Time ToTrade
With the rise of the sun Earth’s activities start at full speed. Not only for trading but for most activities, the morning is also the best time. But here, we focus on how and why traders woke up early. There are at least three reasons that prove morning time is the fittest time for trade.
Market Volatility
If you can capture price movement, you will have a leading position in day trading and volatile stock gives you this opportunity. Highly fluctuated stocks can strike new lows and highs and can move randomly. So, have dramatically high, or rapidly low prices.
When markets are open trading is highly volatile because of news. As morning is a highly volatile and active period, it is the best time to trade.
More Volume And Liquidity
Volume is the total number of shares dealt with on the stock exchange in a given period. Day traders depend on trading volume and liquidity to identify patterns and achieve profit.
From 8 am to noon markets in the US and London overlapped. It is the best time, especially in the first hour(9:30 to 10:30) of market day because 13% of the total trade volume occurs in this time. So, traders must wake up before this time and avail the best opportunities.
Highly Predictable Moves
In the morning session, high volume and liquidity in a stock, trade structure, and pattern seem to look more predictable, and you can easily follow these. These give a trader more options and the best risk/reward ratios.
How To Create A Powerful Morning Routine (9 basic rules you should follow)
If you want to map your goals, you have a time zone for each task. It is necessary because it increases your focus and the task can be completed within your time frame. Learning is more effective when your brain is in acquisition mode. Generally, it is between 4 am to 2 pm and then the next 4 pm to 10 pm. The most down learning valley occur between 4 pm to 7 pm.
Day traders mostly spend their time examining the market for future opportunities. Many of them spend their evenings researching and making new strategies. To create an effective morning routine, you should follow the following basic rules.
- To make a useful morning routine, you should strictly follow your schedule.
- Your night’s sleep should be very good for a good morning time.
- To be an active and smart person avoid the snooze button.
- Welcome positive thoughts and release negative and dangerous thoughts.
- Spend at least 20 to 30 minutes in meditation and exercise.
- Give full time to your work and enter the market with full preparation.
- Write your journal every day.
- Take a healthy breakfast and enough water.
- Review your action plans and check your past mistakes.
Bottom Lines
Nobody likes to wake up early but in trading word your office started before the market opened at 9:30 am. It is the secret of a successful trader to prepare before entering the market. Your inspection of charts for trend makes notes about a different position for indicator, and sharp trade are steps that are necessary for a profitable trade.
And the best time for all these activities is morning time. At this time volume of trade is higher and volatility pays you best. That’s why we recommend you participate in trading activity as soon as the market opens and close your trade at 11 am. Because after 10:30 volume and volatility tend to taper off.
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