Early-Hour Trade Volume
Do you typically place more trades in the first hour than during the rest of the session? What drives that pattern, and how do you prevent it from turning into overtrading?
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Many traders experience high early-hour volume because the market open brings peak liquidity, volatility, and aggressive price discovery. FOMO and the urge to catch the initial directional move often drive this pattern, which can quickly spiral into overtrading if left unchecked.
To prevent this, many traders set a strict rule to sit on their hands for the first 15 to 30 minutes, letting the opening range form before taking any action. This discipline is especially crucial when trading with a prop firm, where breaching a daily loss limit or failing consistency rules early in the session can jeopardize your entire account.
How do you structure your morning routine to avoid early overtrading? Drop your thoughts below!