Stock trading has become one of the most sought after ways of making money. The trade market offers opportunities to make money so long as you have the patience and capability to understand as to when the right time to buy a stock, maintain it and sell it is. These three key decision making factors decide whether you make profits or not. Especially the first hour trading is one of those very lucrative and at the same time most critical and riskier periods of the trading market.

The reason it is called the riskiest is because it is during the first hour of the day that all the day traders are making decisions whether they would like to hold on to a particular stock or choose to buy more units of the stock or even make the decision to book a profit to the price that the stock has moved up to. It is very important to understand that this also becomes the most lucrative position from a trader's point of view as certain stocks that have taken a severe beating due to a selling rally that is caused by some major decision made by the company can the most cheapest stocks to be bought at those levels.

This is the reason as to why first hour trading can either be the most profitable phase of one's trading day or lead to losses that might take a number of months or perhaps even years to recover. Through a recent trading analysis that has been done on the major stock trading organizations of the world it has been determined that forty to fifty five percent of the times major buying and selling decisions happen within the first hour of trading.

The first hour of trading also becomes very volatile in nature. It is during the first hour of trading that the trader is able to access all the major stocking indices around the world. A sluggish and non responsive stock marketing index in the USA can lead to slow trading in India. The first hour trading will give a clear indication of the same. This could be due to the fact that the world is so gloablized that no country can survive as a solitary unit.

Globalization has brought us to a stand point that one country's export is determined by another country's import. One country's performance in terms of production is determined by another country's demand. Thus the first hour of trading also gives you a fair amount of analysis as to which stock would end up at what price. A fair estimation is possible however this estimation requires technical analysis of the price of the stock and also a greater insight as to when to exit.

The first hour trading can be an adrenaline rush when one aims to buy stocks. At the same time it should also be dealt with an air of caution to ensure that you do not end up incurring losses at the end of the trading hour.

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