Price Targets

• Technical analysis is a great tool to help visualize stock price movements on a daily basis. It can help the trader find support and resistance levels. Support levels are "bottoms," or prices where the stock price bottoms out due to upward pressure. Resistance levels are the opposite of bottoms. Resistance refers to downward pricing pressure at a certain level. It is important to be able to read the market, and knowing where support and resistance levels are helps traders to set daily price targets.
  
  

Economic Indicators

• Economic releases and market updates come out throughout the day. Dates are posted on economic calendars, which are most likely available on your favorite investment research site. These are economic indicators which tells investors and traders how the economy is performing across different sectors and interests. The jobs report, consumer price index and consumer confidence numbers are all popular economic indicators. As a result, it is important to not hold a position on stocks just before these numbers are announced, as you don't know what the results are going to be. Once the numbers are announced, you can ride the wave.
  
  

Liquidity

• Another important consideration is liquidity. Every market has its own liquidity considerations. Liquidity refers to the ease with which you can find a buyer or seller in the market. This is characterized by high volume trades and low tick intervals. Liquidity naturally ebbs and flows due to different trading markets, so it is important to know how your stock trades in each market.
  
  

Different Trading Markets

• The Asian markets generally trade from 7 p.m. to 5 a.m. EST, while the European markets generally trade from 1 a.m. to 11 a.m. EST, and the U.S. market generally trades from 7 a.m. to 4 p.m. EST. Lulls in volume and market depth occur at the end of a market. As a result, the best time to trade stocks is between 12 a.m. and 12 noon EST. This is when markets overlap and liquidity is at its highest. Volatility also tends to increase with market volume.