Why enter the market at noon?

I’m often asked why we enter the market at noon or 1 pm EST.

The answer is that there are several factors surrounding finding an optimal time to enter, and unfortunately, most tend to be negative. Some of our options:

  1. At the Open – We don’t want to enter at or near the open. This is a time when professionals are often placing significant orders. The volume is high. We want every one of our subscribers to buy-in at about the same price. At the open, that’s a crapshoot.
  2. At the Close – More of the same, I’m afraid—professionals closing positions. Day traders cashing in. Lots of volume and turmoil. Again, it is not a good time for subscribers to enter and all get similar pricing.
  3. Midday – By midday volumes cool right off. Major price moves are over. We now know the market’s direction and the day’s stock movements. This is the best time for a herd of subscribers to enter.

And it’s the number of subscribers that makes this thought-provoking. You really want to get everyone into the market at about the same price. You don’t want significant consequences for someone entering 15 minutes early or late. Calm waters are what we search for.

Ours is a system built on simplicity. We don’t want complicated entry processes. We don’t want subscribers having to monitor market and stock prices closely. We want simple. We want low-stress, calm waters. In the market, midday entries provide that for us.

D.A. Campbell

IslandEquitySystems.com

Island Equity Systems designs and markets equity trading systems for the personal investor

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