Don's openings and more for 2005

Do you normally trade stocks with news? Personally, I pull stocks with news, so I can't comment on how you would decide what is a gap that is 'too big'. That implies that news interpretation is part of your strategy. Is it?

I never adjust my prices or skew my envelopes.

As to systems going down, yes it will happen to everyone eventually. Make sure you have the phone # of your trade desk handy or on speed dial so you can at least place some stops. My spreadsheet keeps running after the opening bell and tells me the fills that I should have gotten and what the p/l of each position is. It's handy to see if you missed a fill you are entitled to, but also if you do go down, you can call and tell the trade desk what orders to place right away and not have to wait for them to tell you all your positions.
 
Quote from chiguy:

don,

what i am asking is if a stock ie. ROK this morning is indicated way outside your envelope is it something to avoid. ROK opened up 8% and kept going. today the answer is obvious but how does this relate historically.

thanks,

jack
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Generally I leave the orders in, I would have adjusted the sell price to the top half of the opening indication (which means I probably would not have sold it, thus not losing any money). I wouldn't adjust the buy price (you normally don't want to buy in the lower end of an up indicated price).

Quite a move on Rockwell, eh?

Don
 
A stock that is up 8% is not something you want to short. For traders who are new to this concept, I would suggest that you avoid the news plays alltogether. News events attract lots of attention, and hot money tends to follow. So when you are on the wrong side of the "tracks", you get run over by the freight train. These are the types of events that put traders out of business.

Good trading to all!

Mike
 
No fills today. Yesterday 3 fills, 2 wins but the one loser clipped me when I couldn't get out, -293.

On a 5 day losing streak, but somehow still up for the year. Anyone else finding openings a bit dicey so far in '05, or is it just me?
 
Quote from gam1111:

To: Don Bright

What do you say is the recent state of the markets (prop-trading)?

Thanks.
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We have the best markets in a long time (low volatility=lower risk for the learning curve). In the late 90's, early 2000's, the vix was 30-40, not it's around 12-14....

Wednesday + $120, today up $188.

Don
 
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