An end-of-day trading strategy is a process of deciding on and initiating a trading position based on assessing the previous session’s trading activity. It is a simple process, you need to take a look at the trading activity at the end of regular market close, and then you decide ongoing short and long the market or see if it takes no position at all in the market.
End-of-day trading strategies are simple, easy, and even more practical to use. However, developing a strong end-of-day strategy can be difficult sometimes. End-of-day trading strategies are used for both swing trading and day trading.
In 1987, a year that fated to undergo one of the most alarming market crashes, a successful trader named Larry R. Williams took the futures trading world by storm. He sealed his stature in market history and then occupied a space alongside other existed legendary market speculators. He entered the world cup championship of Futures Trading, where he turned his $10,000 stake into $1,100,000 in just a period time of one year that was estimated as an 11,300% return in a live market. Ten years later, his daughter, the famous actress Michelle Williams also won the same contest. She used the same strategy, but it was updated then. In 1987, Larry Williams did not trade every shift in the market, scalping profits along the way. And one can easily argue that this very principle is one major factor that contributed to his success.
Why you should learn the end of day trading strategy
You learn the end of day trading, and you can create a fantastic lifestyle while still trading the markets. Instead of sitting at a screen all day, trying to grab a trade during the day at your job, learn the end of day trading. It basically means using the daily charts or New York closing data. If you did not get New York close price data, you should find yourself. The style of the chart is the same that professionals use to trade to analyze the price action.
Benefits of trading end of day trading strategy
Let’s discuss some core benefits of the strategy.
End of day trading doesn’t disrupt your day
Sitting in front of a computer and your eyes glued to the screen is a bit overrated. And if you have got a business to run, then any frequent intraday trading adds another layer of risk onto your plate. But, on the other hand, end-of-day trading does not get in your way but making your day-to-day activities much more efficient.
If one has developed a system that potentially returns more than it loses, and if that person has the capital to return it, there is no need to do anything else. That does not mean that one should leave orders unsupervised. One must stay alert and look for any kind of connectivity that can be disturbed.
End of day trading is simple and easier to execute. However, the hard part is in its strategy development and capital requirements. There are thousands of ways to develop an end of day trading strategy, but it is just a matter of using your skill and testing it.