What Are Power Hour Stocks?

However, there are also some other readily-used methods of playing at trading the power hour stocks to make a profit.

One of these methods involves buying during the morning session and then selling them again during the afternoon power hour.

Similarly, you could also buy shares during the afternoon, and then hold them overnight before selling them in the morning.

If you’re holding stocks for this longer period, it would be more important to have some context over this particular stock to understand why it is doing what it is doing.

And then use that information to predict how the stock may react to the market in the time in which you are holding it.

If the buzz around a particular stock is negative, you can still make money betting off its projected value by shorting it instead.

How To Short Sell

‘Shorting’, ‘short-selling’ or ‘going short’ is a method of making profit from a stock when you believe that the value will fall, and that nobody else will want it.

• To short a stock, you first have to borrow shares of that stock from your stockbroker.
• You then sell the borrowed shares immediately, bearing in mind that you will have to buy them back so that you can return them to your broker. 
• If your assumption about the value of the stock dropping was correct, you then purchase them back for a lower cost (when you believe that the value is low enough) and return them to your broker. You have now just turned a profit.
• The reason that shorting is usually only ever undertaken by serious traders is that should your risk not pan out, and the stock value actually rises dramatically, you will have to purchase them back at a loss so that you can return them to your broker- and the margins could be infinitely high. Many have gone bankrupt from an incorrectly shorted stock.

Which Stocks Are Best For Power Hour Trading?

Any stock can be used for power hour trading, but the most volatile stocks at power hour are those in trending industries, such as certain technology companies or cannabis oil etc.

News reports or earnings reports can give you the edge over how a certain stock might wobble during Power Hour, and the more you learn, the bigger the advantage you will have over less cautious day-sellers.

You can use the information you have to develop a game plan, and if at any point in the day you see a stock you think will boom during Power Hour hit a low, you can buy it then for a bigger profit later on when you sell high.

Be savvy about what news can be interpreted as positive or negative- and then stick to the plan. Watch how certain stocks react during morning or negative power hours, and decide whether you have the time to trade during one or both.