Don's openings Part 3

D

Don Bright

I guess it's time to start a new thread once again. This time I would like to ask that those of you joining me in this would also track how long you are holding trades. We have had several traders holding positions longer (even overnight) during this lower volatility (I'm not suggesting that at this point, but would like to see how you all feel about it).

Today, back to work (half day), filled on 3 2 profits, 1 loss (net loss of $80)...stupid BMY wouldn't bounce much.

Don
 
Three fills on eighteen stocks. One trade was profitable within two minutes. The other two were initial losers and were paired with similar stocks. Out all positions by 9:54 EST. Net profit was $200 using thousand share lots.
 
I'm usually out of all positions within 20 minutes. I scale out though and may still have a couple hundred shares left if something has started to trend. In that case, I'll put a stop on it and carry on with my other trading. Openings have been working good, but I have been missing nice setups on some other stuff because I'm managing all my open trades. So I look at opportunity cost as well, "what's it worth to give this trade my attention and what do I give up in return?" If you trade spreads, the opening few minutes can give you some great entries.

5 fills today, 1 small loss, 1 small win, 3 wins >20 cents.

Corey
 
Originally posted by lescor
I'm usually out of all positions within 20 minutes. I scale out though and may still have a couple hundred shares left if something has started to trend. In that case, I'll put a stop on it and carry on with my other trading. Openings have been working good, but I have been missing nice setups on some other stuff because I'm managing all my open trades. So I look at opportunity cost as well, "what's it worth to give this trade my attention and what do I give up in return?" If you trade spreads, the opening few minutes can give you some great entries.

5 fills today, 1 small loss, 1 small win, 3 wins >20 cents.

Corey
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Hi Corey, you brought up a valid point about the balancing of openings vs. entries into pairs, etc. It sounds as if you may be using some of your paired stocks as openings, which some do...and run into some concerns (they are "thinking" too much about the possible good entry vs. the other stock)...so we have advised most to use a different set of stocks for the openings, thus giving you a more objective view of the exit point. I might suggest some possible automation (to be instituted a couple minutes past the opening, for exit points...or maybe just picking a decent number like 15 cents for profit on the opening.

It sounds like you're doing well...keep it up!

Don
 
Originally posted by Don Bright


or maybe just picking a decent number like 15 cents for profit on the opening.
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LOL. I love that. A "decent number"! :) Can I ask then, what would be a "decent number" for a loss?
 
Originally posted by daniel_m


LOL. I love that. A "decent number"! :) Can I ask then, what would be a "decent number" for a loss?
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Picking a "decent number" refers to idea of covering a stock when you have several at once to be concerned about. I really prefer this method of "stop winner" than using the "stop loss" - especially in today's level of volatility.

Don
 
not many profits out there on opening strategies...

losses, slippage and commissions > profits

daytraders are not trained to do overnights
 
Been a while since I wrote on this thread, however here is todays' action: 4 orders, 2 fills, 2 winners. 18 and 17 cents respectively. Both financing companies. Later
 
6 Fills, 5 winners (1 small loss on WMT) = $975 profit.

Trading suggestion....

Yesterday and today seem to be bringing us "daytraders paradise" - where the Spoos are leading the market perfectly and moving up and down considerably (kinda early to tell today, but looks the same). Put in some 10 cent envelopes, small shares, this may work....I'm going to do it.

Don
 
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