What is the 11am rule? (2024)

FAQs

What is the 11am rule? ›

Understanding the 11am Rule in Trading

The Rule goes something like this. If the market has not reversed by 11am (Chicago time, CST) then it's unlikely to be a Reversal day. Don't expect any strong moves against the morning trend direction.

​The 11 am rule suggests that if a market makes a new intraday high for the day between 11:15 am and 11:30 am EST, then it's said to be very likely that the market will end the day near its high.

A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.

Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.

The hour of 11 quickly acquired a somber meaning, and in the centuries that followed, became the synonym throughout Europe for someone on his deathbed or about to go into battle: i.e."His family gathered about his bed at the 11th hour," or "The troops in the trenches hastily wrote notes to their families as the 11th ...

In case any English learners are confused, "11 o'clock" in a military context means "slightly to the left of where you are facing", and "12 o'clock" would mean "straight ahead".

Rule 1: Always Use a Trading Plan

You need a trading plan because it can assist you with making coherent trading decisions and define the boundaries of your optimal trade.

It is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.

To increase your chances of profitability, you want to trade when you have the potential to make 3 times more than you are risking. If you give yourself a 3:1 reward-to-risk ratio, you have a significantly greater chance of ending up profitable in the long run.

What is the golden rule of trading? ›

Key Rules from Iconic Traders

Trade with the trend: Follow the market's direction. Do not trade every day: Only trade when the market conditions are favorable. Follow a trading plan: Stick to your strategy without deviating based on emotions. Never average down: Avoid adding to a losing position.

The Rule. If, after trading outside the Value Area, we then trade back into the Value Area (VA) and the market closes inside the VA in one of the 30 minute brackets then there is an 80% chance that the market will trade back to the other side of the VA.

The strategy is based on:

Portfolio management with 70% hedge and 30% spot delivery. Option to leave the trade mandate to the portfolio manager. The portfolio trades include purchasing and selling although with limited trading activity.

A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It's a simple technique that works like a charm in many cases.

Webull: Webull offers full extended hours – 4 am to 9:30 am and from 4 pm to 8 pm. Tastytrade: Tastytrade offers extended hours from 8 am to 9:30 am and from 4 pm to 8 pm. Ally Invest: Ally Invest offers extended hours from 8 am to 9:30 am and from 4 pm to 5 pm.

A positive reward:risk ratio such as 2:1 would dictate that your potential profit is larger than any potential loss, meaning that even if you suffer a losing trade, you only need one winning trade to make you a net profit.

Noun. eleven o'clock (uncountable) (In both the 12-hour clock and the 24-hour clock) The start of the twelfth hour of the day; 11:00 a.m. (11:00).

For example, No Good Deed in Wicked is Elphaba's eleven O Clock number and is the key moment of her journey, the moment where she truly becomes the Wicked Witch of the West.

Examples include "So Long Dearie" from Hello, Dolly!, "If He Walked Into My Life" from Mame, "Rose's Turn" from Gypsy, "Work the Wound" from Passing Strange, and "Cabaret" from Cabaret. It was so named because in the days when musical performances would start at 8:30 p.m., this song would occur around 11:00 p.m.