Don's Opening's Journal....

[The edge]

Don,

appreciate the answer. By the way, check out (if you allready haven't) HDI and NKE. Both have been great plays this last week on opening orders that is. So far I prefer the "big blue" myself during openings, my rule of thumb is that a candidate on one's list at least should have a 2-1 ratio between winners and loosers.

 

[Don Bright]

Originally posted by The edge
Don,

appreciate the answer. By the way, check out (if you allready haven't) HDI and NKE. Both have been great plays this last week on opening orders that is. So far I prefer the "big blue" myself during openings, my rule of thumb is that a candidate on one's list at least should have a 2-1 ratio between winners and loosers.

Thanks, always looking for good candidates. I mix it up a bit, couple of brokers, couple of banks, couple of techs, you get the idea. I am even more picky than you are...I want about 80% + winners on any given stock.

 

[Chartwiz212]

Okay sounds cool......thanks

 

[mjt]

Don

Am I doing the math right here? Looks like about 100,000 shares per month traded, about 5,500/mo profit...this comes out to 5 to 6 cents profit per share per trade. And take out another 2 cents for commissions, bringing your profit to 3 to 4 cents profit per share per trade. Is this correct?

 

[Don Bright]

Originally posted by mjt
Don

Am I doing the math right here? Looks like about 100,000 shares per month traded, about 5,500/mo profit...this comes out to 5 to 6 cents profit per share per trade. And take out another 2 cents for commissions, bringing your profit to 3 to 4 cents profit per share per trade. Is this correct?

Our "$million / year" traders generally average about 2-4 cents per share (for all their trading), and that is excellent! I keep my orders very (very) conservative so that I can share this with the school people who may not be able to relate to the larger size trades we use during the day.

The way we use this strategy is not just for that small amount of profit per day, but to get the trader's "head into the game" for the rest of the day. Too many people wait for "something to happen" before entering trades, and then they become complacent and miss the most important hour of the day...

 

[Don Bright]

Originally posted by Don Bright


The numbers are "net." But even if they weren't...

Our "$million / year" traders generally average about 2-4 cents per share (for all their trading), and that is excellent! I keep my orders very (very) conservative so that I can share this with the school people who may not be able to relate to the larger size trades we use during the day.

The way we use this strategy is not just for that small amount of profit per day, but to get the trader's "head into the game" for the rest of the day. Too many people wait for "something to happen" before entering trades, and then they become complacent and miss the most important hour of the day...

 

[The edge]

Don,

do you still calculate 1 future point equal to 8 dow points, or is it more these days? Things might have changed since I last participated in you and your brother's class in Vegas

Just wondered since this of course may influence my opning orders both short and long. By the way, have a good weekend! I'll do more research this weekend on selected stocks, and we'll touch base next week.

 

[The edge]

What the heck! I might as well post my opening plays for the day, so we all can share and bring our strategies to another level. Hopefully somebody else also will provide their plays at the end of day. Here goes:

AOL, long at 32,43, stopped out at 32,10, went thru my initial stop at 32,18. LOOSER

HON, short at 33,25, took profit at 32. WINNER

EK, short at 31,15, stopped out at 31,40. LOOSER

MMM, long at 118,50, took profit at 118,89. WINNER

IBM, long at 122,70, profit at 122,95. WINNER

UTX, short at 63,90, stopped out at 64,10. LOOSER


Comments would be appreciated!

 

[Don Bright]

The numbers will work by percentages no matter what. Mostly we just use the actual percentage rather than convert.

 

[The edge]

Here are my trades for today on the opening:

KO, long at 47,5, exit 47,75, WINNER
JNJ, long at 59,34, exit at 59,56, WINNER

also hit on my watchlist were GM,JPM, HD,MRK,ABT,CI,IGT.

Comments still appreciated!!