c02 JWBT016-Busby September 30, 2008 13:33 Printer: TBD
Time Is Money 25Time Segment 1 Asian markets open and lead the way. World traders
are looking to the East and the focus is the Nikkei and
the Hang Seng.
Time Segment 2 European markets open and exert their influence. If
market sentiment is strong in Asia and supported by
enough data or emotional fuel, the movement may
spread from the exchanges in China, Japan, Singapore,
India, and other eastern areas to European shores.
During this time segment, Europe leads the way. All
eyes are focused on European financial centers and
the focus is the CAC (Paris), FTSE (London), Swiss
(Zurich), and Dax (Frankfurt).
Time Segment 3 U.S. exchanges open. New York comes to life and
trading tends to be fast and furious for 30 minutes or
so. Then prices may settle down a bit. However,
trading continues to be active for a couple of hours. In
the early stages of morning trading, Asia and Europe
may influence the mood. If a strong buying or selling
sentiment has been expressed, it may gain momentum
on Wall Street. Throughout this time segment, U.S.
markets dominate the scene. New York and Chicago
are alive with trading excitement.
Time Segment 4 The afternoon trading session in the United States may
be relatively short, but it may also be important. After
lunch and a break from the markets, traders may
reverse their morning positions. Or, if they decide they
are on the right side of the action, they may add to
positions and strengthen the morning move. As in time
segment 3, the United States leads the way. The sun is
moving westward across the United States, and
traders in California and the western United States are
weighing in. The trading pits of U.S. exchanges close
during this segment.PEARL 3The market is open 24 hours a day. Learn how to take advantage of it.TIME AND ITS IMPORTANCEIf you have any experience trading, you already appreciate the importance
of time. Buy a stock on one day or at one time during the day and make