Don's openings and more for 2005

[nitro]

Quote from reid5525:

What is the concept for opening orders trading. I must ask because at the open you do not have any idea which way the stock will go.
What's your rational for trading stocks with potential for small intraday trading ranges.

That question has been answered many many times over the years in Don's thread.

I am not going to rehash it again, but the basic idea is that there is a relation between where a stock that is affected by the SP futures should open in the absence of any news or other external forces and where it actually opens due to a buying or selling imbalance that builds up overnight.

You then add and subtract conservative padding to that "fair value" to get where you go short and where you would go long on the opening print. If the opening print is anywhere at or outside of those two Opening Limit Orders, you get that price improvement and participate on the opening print. The hope is that the imbalance was temporary and the stock mean reverts enough for you to take a profit.

Otherwise if the Opening print is inside your two Limit Orders, the orders automatically cancel.

Put out that net for enough stocks and combine it with trading skill and VERY LOW commissions and ACCESS TO LOTS OF CAPITAL and you have yourself an edge.

nitro

 

[reid5525]

Quote from nitro:

That question has been answered many many times over the years in Don's thread.

I am not going to rehash it again, but the basic idea is that there is a relation between where a stock that is affected by the SP futures should open in the absence of any news or other external forces and where it actually opens due to a buying or selling imbalance that builds up overnight.

You then add and subtract conservative padding to that "fair value" to get where you go short and where you would go long on the opening print. If the opening print is anywhere at or outside of those two Opening Limit Orders, you get that price improvement and participate on the opening print. The hope is that the imbalance was temporary and the stock mean reverts enough for you to take a profit.

Otherwise if the Opening print is inside your two Limit Orders, the orders automatically cancel.

Put out that net for enough stocks and combine it with trading skill and VERY LOW commissions and ACCESS TO LOTS OF CAPITAL and you have yourself an edge.

nitro

Not my cup of tea.
Thank's for explaining it, though.

 

[Don Bright]

I guess some people are "profit adverse" - (Just joking)....

Small day today, +$200, pretty solid YTD I must say, consistency wise.

Don

 

[nitro]

Quote from Don Bright:

I guess some people are "profit adverse" - (Just joking)....

Small day today, +$200, pretty solid YTD I must say, consistency wise.

Don

Don,

Is that after commission or before?

nitro

 

[reid5525]

Quote from Don Bright:

I guess some people are "profit adverse" - (Just joking)....

Small day today, +$200, pretty solid YTD I must say, consistency wise.

Don

Don, I'm a 2day breakout trader, usually with previous day's high as my stoploss floor. How do you like PFGC today when it broke above prev day's high (25.03) at 10:10am. It topped at 25.89. That's mostly how I trade. I like the 2day breakouts. When you jump on about three of them at the right time of day and with the right chart pattern, you'll be taking profits.

 

[Don Bright]

Quote from reid5525:

Don, I'm a 2day breakout trader, usually with previous day's high as my stoploss floor. How do you like PFGC today when it broke above prev day's high (25.03) at 10:10am. It topped at 25.89. That's mostly how I trade. I like the 2day breakouts. When you jump on about three of them at the right time of day and with the right chart pattern, you'll be taking profits.

We never use stop losses, we rarely trade the nasdaq, we only use charts for longer term evaluations (not for trading). We trade like the exchange traders and Specialists trade (the guys who have been making money for 200 years)....that being said, if you're making big money, keep doing what you're doing, with my blessing (not that you need it, LOL).

Don

 

[reid5525]

Quote from Don Bright:

We never use stop losses, we rarely trade the nasdaq, we only use charts for longer term evaluations (not for trading). We trade like the exchange traders and Specialists trade (the guys who have been making money for 200 years)....that being said, if you're making big money, keep doing what you're doing, with my blessing (not that you need it, LOL).

Don

I'm doing ok with my strategy, Don. I find all your threads and posts interesting. I will not have anymore to say on this thread because, obviously, I am trading another style, and this is about opening orders, something I know nothing about.

 

[Don Bright]

+$200, and a bit more after some "post opening" trading (showing examples of tape reading for the boot campers).

Boot campers: Only 3 of 18 had losses of any kind (their first "real" day).

Don

 

[nitro]

Quote from Don Bright:

+$200, and a bit more after some "post opening" trading (showing examples of tape reading for the boot campers).

Boot campers: Only 3 of 18 had losses of any kind (their first "real" day).

Don

Don,

I am not sure you are seeing my questions, but I have asked several times if these numbers you post are before or after commission, and if after, what commission rate is it based on?

nitro

 

[r-in]

On the website via the remote trader link i found, at least an old commission schedule, and it would seem like it would be close as to whether you end up positive, depending on the number of fills to get the profit. I have to admit these threads have peaked my interest to the point where I am thinking of reinvesting some profits in further education.