Don's openings and more for 2005

Quote from Don Bright:

Well, something is wrong since I trade KO as well, and my .4% envelope was not filled...I had a 42.36 bid, and it opened at /42.41. FV = 1.12 today...market pretty flat ....

I suggest you check your computations.....but, hey, you made money....good job!!

Don
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I had my bid at 42.41... i probably got the wrong % for the FV...
I got the FV from briefing which was 0.8 up. I also adjust my entry w/ the BETA of KO.. in this case, the beta is 0.68.

When you say .4% envelope... do u mean .4% below and above?
I use .8% below and above... and most of the time I don't get filled unless there r some substantial gap up/down.

I made 13 cents on KO, but i also held it 11 cents against me so I don't think I did the right thing :confused:

Thanks!
 
I hope this doesn't make me sound like a jerk, because I am asking this as a legitimate question...

Reading through this thread, the profit numbers tend to be around $150 - $450 a day trading several thousand shares.

Is that enough of a profit for that kind of exposure? I'm not a stock trader, I'm an options trader, but those numbers just seem terrible to me. I mean, that only works out to around 70K a year taking only 20 days off a year.

This question is mostly meant for Don, because I know that you have a lot of experience in trading (electronically and on the floor). Is that all the money you make from trading or do you have other trades that you are doing that you don't post in this journal? Because those numbers just don't seem big enough for someone with your experience and they certainly don't seem big enough to trade that number of contracts.

Hope that didn't come across too harsh, I was just amazed and am thinking that I am not seeing the whole picture.
 
Quote from Dedupe:

My firm doesn't hv Open only orders, so I juz send out limited buy/sell orders and cancel them manually at around 9:30:15... I don't usually get filled right off the open.

Please advice :)
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One of the biggest advantages of this method is the openingonly order type. I would advise against using regular day orders.
You may not get the opening print with them. Plus not all stocks open at 9:30 on the dot and you may lose track of them and get filled when you didn't want to.

I would pester my firm to get this order type. It's available at many retail firms now.

Good luck!
 
Quote from Verdais:

I hope this doesn't make me sound like a jerk, because I am asking this as a legitimate question...

Reading through this thread, the profit numbers tend to be around $150 - $450 a day trading several thousand shares.

Is that enough of a profit for that kind of exposure? I'm not a stock trader, I'm an options trader, but those numbers just seem terrible to me. I mean, that only works out to around 70K a year taking only 20 days off a year.

This question is mostly meant for Don, because I know that you have a lot of experience in trading (electronically and on the floor). Is that all the money you make from trading or do you have other trades that you are doing that you don't post in this journal? Because those numbers just don't seem big enough for someone with your experience and they certainly don't seem big enough to trade that number of contracts.

Hope that didn't come across too harsh, I was just amazed and am thinking that I am not seeing the whole picture.
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I post results from my "training" program, with share size and profits that can be done by new traders. We have traders who make $20,000 /day at times...(of course, they can lose $$ at times as well).

This strategy can be simply "dialed up" with share size, layering, additional stocks, etc.

Don't worry about asking..a fair question. As you may have noticed, I'm going to kick things up a bit in 2006...try to get above that $50-$100 K mark.

All the best,

(Check out Lescor and Mike Schey, and a few others, they make the big $$)....

Don
 
Quote from Shreddog:

One of the biggest advantages of this method is the openingonly order type. I would advise against using regular day orders.
You may not get the opening print with them. Plus not all stocks open at 9:30 on the dot and you may lose track of them and get filled when you didn't want to.

I would pester my firm to get this order type. It's available at many retail firms now.

Good luck!
More...

I agree...do the Opening Only method...not a limit "day" order... much better chance for $$. Too many potential pitfalls.

Don
 
Lots of listed stocks don't open right at 9:30, quite common for some to be delayed several minutes. If you send regular limits and cancel after 15 seconds, you'll miss a lot of fills.

And Don is right, something's wrong on your KO calculation, you're way off.

Quote from Dedupe:

Hi All,

I am a newbie on the openings, and I hv been doing it since the beginning of the month. The following is my result for today.

20 orders, 3 fills, All LONG
WINNER: KO (13 cents), USB (5 cents), MCD (1 cent)
LOSER: 0

I am using 0.8% envelope, and i adjust my entry w/ the fair value & individual stock beta. Is that the appropriate to do?
My firm doesn't hv Open only orders, so I juz send out limited buy/sell orders and cancel them manually at around 9:30:15... I don't usually get filled right off the open.

Please advice :)
More...
 
Quote from Dedupe:

I had my bid at 42.41... i probably got the wrong % for the FV...
I got the FV from briefing which was 0.8 up. I also adjust my entry w/ the BETA of KO.. in this case, the beta is 0.68.

When you say .4% envelope... do u mean .4% below and above?
I use .8% below and above... and most of the time I don't get filled unless there r some substantial gap up/down.

I made 13 cents on KO, but i also held it 11 cents against me so I don't think I did the right thing :confused:

Thanks!
More...

4 tenths of one percent above estimated opening price, and the same below...that's how I teach it.

Watch KO, he's a bit unruly...and I think the Specialist is already on Holiday....


Don
 
Thanks for the clarification, Don. I figured there was more to it. You continue to prove yourself a gentleman and a scholar. Happy trading.
 
Don't forget that today is rollover day fellas. Always the Thursday of the week before expiration.

New front month contract is March, ES H6
 
wow massive fills on accident today. 10 fills...6 winners 4 losers ALL short. +831 I was a penny under in my sell orders and figured i would have time to fix them. Then i noticed i had double orders for buys...so i was running around canceling the extra orders and market opened before i got to sells. :( They all went against me at first...i started covering then they started coming back :)
 
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