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Step 1
Purchase stock in the morning as soon as the markets open when there is good news in the overseas market and these markets trend upward. There will be times when the stocks don't follow the overseas market but more often than not, one stock market will follow the other. However, this guideline is only for the North and South American markets because the overseas markets open first.
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Step 2
Sell stock as soon as the markets open when there is bad news in the overseas markets and those indexes move down. As the previous step noted there are exception to the guideline and this is limited to the North and South American markets.
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Step 3
Make a note of news in a particular sector as the markets open or close. Bad news in certain sector like pharmaceuticals can drag down most every stock in the sector. This will create a buying opportunity when this news hits the wires. Conversely, good news in a sector is a great time to sell a stock that rose based on the sector news, which had nothing to with that stocks performance.
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Step 4
Avoid trading in the morning or the afternoon if you are an inexperienced trader. The middle of the day around lunchtime is the most stable time for prices; therefore, an inexperienced trader will be less likely to lose money on a trade due to the volatility of the market.
