The First Hour is For Binary Options Day Traders

By Nick Santiago, an Expert Technical Analysist, Chief Market Strategist, President and CEO of, and a gifted teacher in educating other on the truth of the markets.

When it comes to trading, active markets are always the best. If you have traded the markets for a considerable amount of time, you know that the best part of the trading day is within the first hour to ninety minutes. This is a time period when there is typically high volume in the market. Higher volume indicates more participation in the markets, especially by institutions. This activity allows for the key support/resistance levels found on charts to be great trading points.

If you have ever looked at an intra-day chart of a stock or index, you will notice that the trading volume declines dramatically after the first hour to ninety minutes of the session. The morning period is when day traders must seize the moment, as the markets are most active then. Once 11:00am ET rolls around the markets become manipulated by the institutional traders during the light volume. The institutions aim to stop out the small retail futures traders for a loss. Also they will push the retail options trader contracts worthless at expiration. Remember, it is not the retail trader moving markets. The unfortunate case for most inexperienced retail traders is that they are often late to the game; they buy the top after the move higher occurred and sell the low before the bounce higher begins. As a retail trader, you need to understand what the institutions are doing, how they trade, and use it to your advantage.

Take a look at the choppy sideways range experienced in the chart below after 11:00am ET, you will see an example of this.This type of game playing goes on everyday in all active stocks, indexes and options. Sure, once in a while the markets will be active throughout the entire session, however, that is not normally the case. All leading stocks such as Google Inc.(NASDAQ:GOOG), Chesapeake Energy Corp.(NYSE:CHK), and Broadcom Corp.(NASDAQ:BRCM) become difficult to trade after the early morning session. These are just a few of the countless stocks that will trade in an erratic manner after the first ninety minutes of the day. Keeping this in mind, day traders should focus on the morning session. Leave the three hour lunch time game playing to the institutions who take the money of the inexperienced.

1 Minute chart of Google (NASDAQ:GOOG) from 10/30/13

Knowing exactly what the institutions do and the games they play will allow you to increase your profitability, and decrease your potential for losing. Enjoy your profits and only trade when the time is right.

Magnum Options is a broker platform that seems to have mastered the brokering world of Binary Options. Established in early 2013, Magnum Options uses the latest technology for Binary Options traders. The broker is privately owned by investors with many years of experience in the online trading industry. The day to day management is handled by a team of experienced online trading professionals who have all been in the position of their users, and really understand the needs and priorities of both novice and experienced traders. These professionals have assembled an educational team like no other that really focus on informing and educating all traders interested in trading binary options. Because of their expertise in the financial trading industry, Magnum Options has a very unique and refreshing approach to education, teaching people not only how to trade using a binary options account, but also how to use binary options with other  trading methods to maximize profits.

9 thoughts on “The First Hour is For Binary Options Day Traders

  1. Cameron may be sympathetic to German concerns his heritage is largely from there But his loyalty is to the UK Markel flagrantly exercises leadership of EU and of Germany, they do not, repeat not coincides It is a conflict of interest the size of the Reichstag Also EU was never just about money, how could it be? Each brought something to the table Greece brought civilisation and beauty, tourism in buckets full It`s not just Euro=money It`s supposed to be a be dawn for citizens of all members Everybody has been overspending borrowed money Everybody has to tighten their belts we understand that Merkel has dithered, procrastinated in her dual leadership, now it`s to late for Greece It`s partly because she has failed utterly Here is a direct quote from EU website: He is a loner now so he grabs all he can I thank you Firozali A Mulla DBA-

  2. The Chicago Board of Trade, is an impressive website.Congratulations to you all.I'm a retired Ship Captain who used to carry a lot of rice around the Far East.So my interest is rice carriage.But I'm not a Trader,The market for rice futures sems quite complex.Also can I ask, is there a graph for Rice Futures showing the trends.Rgds to All.Jim Brunton.

  3. My apologies for leaving the chart off the post. I have added a 1 min chart from 10/30/13 of Google (NSADQ:GOOG) as an example.


  4. the author clearly says "in the chart below" - did he/she neglect to add it or did it drop off during retransmission ???. the article has much less value without it since there is nothing to illustrate the propositions made...



    1. There isn't a chart with the post Kevin. The author is referring to any chart that you may look at during the opening of the market.


  5. OK for stocks. What about the Forex markets? I don't think the same holds true for that market sector.

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