E-mini Trading: Top 4 Worst Times To Trade

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.

The e-mini trader has unprecedented access to the markets. He or she can trade from their office via the GLOBEX exchange almost 24 hours a day. This high level of access can be a huge benefit but tit can also be dangerous for the undisciplined trader. There are times when it is in the best interest of the trader not to be initiating new positions. These examples below explain when and why it is a good idea to step away from the charts.

1. 4:15 EST – 2:30 AM EST

Commonly referred to as the After Hours session the period directly after the US market shuts down can be extremely slow trading. Low participation levels often means the market won’t move a tick for several hours. The flipside of low volume is that important support and resistance levels where you would normally expect to see high participation can be wiped out without much of a fight. Moves that occur during this time period are best left to traders who watch and trade multiple markets.

2. 9:30 AM EST – 10:00 AM EST

The opening 30 minutes is often referred to as the wildest 30 minutes of the day. When the New York Stock Exchange opens up there is a flood of market orders. The orders are initiated by non-traders and there is little concern over exact fill levels. This can mean intelligent levels that would normally hold at any other point during the day are completely blown out of the water. Step away from you station and let the market orders die out before you start to analyse the trend for the day. This will save you from getting chopped up in the early morning rush.

3. 11:30 AM EST – 1:15 PM EST

In the middle of the trading day on the east coast the lunch break can often be a very rough time to look for new entries. Liquidity dries up from the morning and traders wait on the sidelines until the start of the afternoon. Price movement will often find a range and stay within that range until the afternoon push begins. Avoid trading this time period and you will save yourself commissions by not falling into the range trap.

4. 3:00 PM EST – 4 PM EST

The final hour of trading is an extreme version of the volatility seen in the first thirty minutes. Traders look to close out their positions as the bell approaches and fills become less and less solid. Extreme price swings are not uncommon and inexperienced traders can put themselves into very problematic spots if they initiate trades during the last hour.

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.

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