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anyone trade pre market or post market ?
- Thread starter SethArb
- Start date
I gave up trading pre-market several months ago when I realized I just can't get myself in a proper frame of mind at 5:00 A.M. PST. While there are certainly opportunities there is nothing worse than being down $1000 before the open.
As far as after hours is concerned earnings season can be very lucrative if played right. I make a list of companies that will be reporting after the close and write out consensus expectations for the next several quarters on each. I then create a page on IB listing each reporting company and its competitors. I will then watch the headlines roll across the Dow wire and look for opportunities. I will normally watch the reaction of a primary stock such as INTC yesterday and IBM today and then play stocks which will move in line with these. You could have traded MSFT off of both of these reports and easily cleared a $1.
Because you do not have time to think about trades after hours it pays to play small. I ignored this rule this afternoon shorting AAPL at 13.8 with 52 week low of 13.36 as a target. I increased my position at 13.6, tried unsuccessfully to cover at 13.4 and stubbornly covered for a nice fat loss at 14.10.
As far as after hours is concerned earnings season can be very lucrative if played right. I make a list of companies that will be reporting after the close and write out consensus expectations for the next several quarters on each. I then create a page on IB listing each reporting company and its competitors. I will then watch the headlines roll across the Dow wire and look for opportunities. I will normally watch the reaction of a primary stock such as INTC yesterday and IBM today and then play stocks which will move in line with these. You could have traded MSFT off of both of these reports and easily cleared a $1.
Because you do not have time to think about trades after hours it pays to play small. I ignored this rule this afternoon shorting AAPL at 13.8 with 52 week low of 13.36 as a target. I increased my position at 13.6, tried unsuccessfully to cover at 13.4 and stubbornly covered for a nice fat loss at 14.10.
"I ignored this rule this afternoon shorting AAPL at 13.8 with 52 week low of 13.36 as a target. I increased my position at 13.6, tried unsuccessfully to cover at 13.4 and stubbornly covered for a nice fat loss at 14.10."
sounds like me today in INTC .... I was a stubborn SOB
had a chance to scratch or take a small loss at first
but I was sure that certain levels would hold ....
lesson learned .... levels only hold if you're in tune with
your emotions and the market instead of out of control
I think I learned a new rule today though ...
if I say Damn 3 times in a minute .... its time to exit my position
sounds like me today in INTC .... I was a stubborn SOB
had a chance to scratch or take a small loss at first
but I was sure that certain levels would hold ....
lesson learned .... levels only hold if you're in tune with
your emotions and the market instead of out of control
I think I learned a new rule today though ...
if I say Damn 3 times in a minute .... its time to exit my position
Good rule.
These types of trades always kill me. I saw their guidance was well below expectations and I was able to put out a short quick enough to see a nice profit, I was just too slow to cover. When the stock bounced because of the positive reaction to IBM's number I should have covered immediately, but it is hard to buy back at break even when I had a nice profit two minutes earlier.
Any time I become hesitant and stubborn when trading after hours I usually get burned. On the flip side, it is this volatility and immediate gratification that draws me to after hours.
These types of trades always kill me. I saw their guidance was well below expectations and I was able to put out a short quick enough to see a nice profit, I was just too slow to cover. When the stock bounced because of the positive reaction to IBM's number I should have covered immediately, but it is hard to buy back at break even when I had a nice profit two minutes earlier.
Any time I become hesitant and stubborn when trading after hours I usually get burned. On the flip side, it is this volatility and immediate gratification that draws me to after hours.