I realize this is nothing new but I'm wondering if, as a rule, the following method of trading is successful. I've noticed that, while watching CNBC at 8:30CT on the open, Maria B. will typically say some larger NYSE stocks haven't yet opened for trading but are indicated lower. Is it a good idea to buy here with the specialist at the open, when stock has gapped down and specialist has bought the shares at a bargain, then sell 15-30 minutes later after the specialist has moved the price higher. This seems to happens all the time. Friday was a classic example - just look at IBM and KR. Thanks, guys!
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Any one traded this way with success?
- Thread starter dpg2020
- Start date
It probably works more often than not, but remember that these are usually news events that can spread against you by 50 cents to a dollar with no prints in between. A 10 cent stop loss is no good to you there.
There's also no guarantee that the specialist is buying the opening print, and specialists can lose money.
Friday was anything but classic, the triple witch was skewing things heavily.
There's also no guarantee that the specialist is buying the opening print, and specialists can lose money.
Friday was anything but classic, the triple witch was skewing things heavily.