When in the trading session do you generally enter your trades?
For example: right at the open? Do you wait 15-20mins for stocks to settle down? I find often stocks start the day higher but within an hour or so pull back. Do you have a rule?
That is a good question. Typically, I do not enter a swing trade during the first 60 minutes. That is unless the stock is moving through its buy point, and then I will buy a stock no matter what time of the session it may be. If we buy at the proper buy point it takes care of most issues.
If I am day trading then I use a 5-minute chart and wait for confirmation above the initial high. That typically takes 60 minutes or so.
I have been burned too many times buying a stock near the open of the session only to have it reverse 30 minutes later. That is not fun, and a main reason I like to wait for the market and stocks to reveal themselves.
If I am buying a stock longer term because I have conviction in the stock and the thesis then I will buy at any time knowing that I will continue to buy. TSLA is a great example as I believe it will be the largest market cap company in the near future. I would buy it at the open and buy it again next week/month, and continue to add every week or month in order to build my position.
I will add that the Monday morning gaps higher are generally a sucker's play, and I have learned to just sell into the strength. Sometimes they power higher. But, more often than not they fade. I do not like Monday morning gaps higher, and avoid trading at that time
I hope this answers your question!