The day trading of penny stock market has a very short term focus unlike the traditional investment. The analysis of the penny stock trading investment can be broken down into days, hours or even minutes and seconds. Since the day trading focuses on short term trading strategies, you need to know about which time of the day is suitable for a successful trade and which is not.

In the morning times, market volumes and prices will go high and the opening hours in the morning will have new releases and penny stock shares introductions into the market. This will increase the market volumes of great number of shares and the price will vary with great volatility. An active, skilled and experienced investor can recognize the appropriate downs and ups of the volatility and can proceed business to make a good profit while a new investor could suffer great losses due to the fluctuations and volatility in the prices of the penny stock shares.

If you are a skilled trader, you may want to proceed trading without wasting any of your time in the opening bell. But if you are a novice, you must avoid trading in the volatile morning hours. The middle of the day will be generally calmer and more stable. People will wait for further news to be announced at this time.

The news will be released regarding where the penny stock market will be heading the day and news of the stocks prices which are already being factored will be released during midday. This is a good time for the new investors to begin the penny stock trade as the prices of the penny stock shares will be calm and stable at these times. You can also be assisted with the more predictable returns if you trade at this time of day.

During the last hours of the day, the volume of penny stocks shares and the price volatility will rise again. Many traders will try to close their trades at these times of a day and hence there will be great fluctuations and volatility in the prices of the penny stocks. Some may continue their trade with the late day rally which will take their trade to the next day, thus putting more price fluctuations in their trade.

The time of the day you enter into trade has a great impact on your business and hence it is essential to choose the appropriate time of the day for your trade.

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