Forex Investing at the Right Time - The 10 am Rule and How it works

1. It is sometimes better to wait until the morning before investing in stocks. This rule protects capital and can be a good example. You want to invest in a stock for any reason. It could be a trend, or you might think that a hot sector is going to participate in a rally. It is sometimes better to wait until the morning before investing in forex. You can then see how the day unfolds. The 10 A.M. rule is a great example of this concept, and is an example that protects your capital. Let`s say you want to buy a forex stock, for whatever reason; a trend play, or a market rally that you think a currently hot sector will participate in. The gap down is a good time to buy, but you know the market will be in a rally and the forex stock will gap up instead. The gap up trade is not a good one. What do you do now? The 10 A.M. Rule is used to determine the best time for investing in forex stocks. You should only trade the forex stock if it reaches a new daily high after 10 A.M. Of course, you will use stops to protect yourself, like you would on any trade. Anyone who has followed the forex market knows that the stock price will often spike up in the early morning hours, before suddenly falling and reversing into negative territory. You can avoid this risk by following the rule of 10 A.M. The forex stock may reach a new high even after 10 A.M. There is still trader attention in the stock and it has a good shot of increasing momentum. Here's an example of how the rule at 10 A.M. can be applied to a gap-up: A foreign stock closes its day at $145. The company announces the split of two forex stocks for one after hours. The forex stocks open the next day at $161. It trades as high as $166 before 10 A.M. For two hours after 10 A.M. it trades lower and doesn`t reach $166. At 2 P.M., it hits $166.50. Using the rule of 10 AM, it is safe to purchase forex stocks. Using a version of the 10 A.M. rule, you could watch for a hot sector to appear in the morning and follow the forex stocks in the sector that are up for the day. If the forex stocks are still making new highs at midday, they stand a good chance of finishing the day near their ultimate highs for the day, and could be good trading opportunities. This also applies in a down market and to stocks in forex that gap down, opening at prices lower than where they closed the previous day. In this situation, you should not short a forex stock that has gapped down unless and until it makes a new low for the day after 10 A.M. The 10 A.M. Rule will ensure that you never chase and buy a foreign stock when the chances of a successful trade are low. Trading is all about probabilities. The more stock trading forex trades that you do with a high chance of success, you'll be more successful. The 10 A.M. rule youtube tradingview is a valuable addition to your trading plan, giving you a straightforward way to avoid making costly mistakes and to increase your number of profitable stock investing trades in forex.