1. The first trade executed in a day is termed as the opening price for a stock. Opening price indicates the emotional direction of the market. Similarily closing price is the last trade executed in the system for the day. Closing price represents a more reasoned and well-researched view in higher percentage of the cases.
2. Public places orders in the system previous night online or aggresive traders trade as per previous day conditions and events.
3. If one is a agressive day trader then one make a lot of money by trading in the first half of the marke hour and the last hour of the market. However risk being undertaken is higher as compared to those who watch the developments during the day.
4. Normally Institutional investors trade during the end of the day after watching the developments during the day. As a retail investor it is advised to watch the proceedings during initial half an hour of the day to avoid extremes of stock prices.
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