Have you ever experienced having a good setup but psychologically you still doubt if you want to enter the trade due to “external factors” be it news, social media, or other people’s analysis?
Well, the easiest solution to reduce noise is to turn off your Facebook or Twitter and just open your charting tool.
If you’re an end-of-day (EOD) trader and you want to increase your edge while at the same time gaining “peace of mind” after entering a trade, then you’ve come to the right place.
I will share to you some tips on how to interpret EOD moves.
1. Analyze the order table an hour before the market closes
The order table goes by many names: some call it order book, bid/ask table, or market depth.
There is a way to look for supports and resistances intraday without relying too much on the price chart that you can watch here (this is very useful for trading IPO’s as well if you plan on scalping intraday)
2. Enter before the market run-off
It depends on the situation but most of the time I enter before the run-off. Why did I choose before and not after?
If your trading platform has a feature that can project the closing price of a stock, then you can also use it to your advantage whenever you want to enter before the closing bell.
However, entering before the market run-off is somewhat a double-edged sword as there are stocks that suddenly buy up or sell down when the market’s about to close.
So you have to keep an eye on possible news or catalysts that may make or break a stock.
Hope this post helps and feel free to share your other advice.