Don's openings Part 3

opening indications:

well, i would've had one fill today, but i increased the short side of the envelope to the upper half after i saw it indicating higher. i did not get filled, and had i let the original order alone, it would've been about a quarter point winner.

i think i did the right thing, according to what opening master don has previously said. any comments welcome.
 
Don, are you saying LEH and C were opening fills for you yesterday and you held them overnight? Is that normal practice for how you trade the open?

For today I went 4 for 5 with 4 longs and 1 short. Made $300 after commissions. CAT slapped me upside the head for a 25 cent loss.
 
Originally posted by lescor
Don, are you saying LEH and C were opening fills for you yesterday and you held them overnight? Is that normal practice for how you trade the open?

For today I went 4 for 5 with 4 longs and 1 short. Made $300 after commissions. CAT slapped me upside the head for a 25 cent loss.
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No, actually I took a loss on the opening, traded them pretty well, but ended up short coming in...It's kinda funny, if I don't make some money on the opening, I tend to trade quite a bit more during the day (it's a little tough to follow the tape well with all the phone calls and interuptions during the day, so I don't have the luxury of being able to trade as much as I like)....but I like to recoup any losses.

Don
 
Traders out there

how do you judge when to enter a Market on Open

order in the NYSE ?

lets say you have a position and want to sell out on the open

problem is you are guessing usually on where the opening print
will be are'nt you ... based on the how other stocks in sector
and your name traded since the previous days close
and based on where the futures are ?

and this is even without huge news to drive the name

thanks to anyone who can give me a moment of his time on the Q.
:)
 
where do you get late pre market indications on a particular name from?

a news feed ? floor souces ?
the way a name trades pre market ?
 
Originally posted by Don Bright
Since we have class this week, I will ask that one of the ET attendees make some notes about the strategy, if they like.

Don
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Which you will then ask them to attatch as a word file to a post on this thread?! :) :)
 
Re: NYSE and the indication. Redi gives out all the "pre opening" indications of where the NYSE stocks are going to open (the range anyway) if they are going to open 30 cents or so away from where they closed. This does not affect our opening only strategy since we base our buys and sells on fair values.

I did have a good opening, 3 for 3 with a profit of $720....and I did have a couple of ET'ers here to check the long term spreadsheet....which they will Not be attaching....lol.

Good class this time, about 30 attendees and 25 returnees (non Bright Traders) and about 20 Bright Traders for the more advanced single day class put on by my brother today.

Back to you all tomorrow!

Don
 
Originally posted by SethArb
Traders out there

how do you judge when to enter a Market on Open

order in the NYSE ?

lets say you have a position and want to sell out on the open

problem is you are guessing usually on where the opening print
will be are'nt you ... based on the how other stocks in sector
and your name traded since the previous days close
and based on where the futures are ?

and this is even without huge news to drive the name

thanks to anyone who can give me a moment of his time on the Q.
:)
More...

I enter market on open orders for the same stocks every single day of the week. I would never use a market on open order to exit an existing position, because as you say, you are guessing at where it's going to open. I will use opening orders to enter stocks that are delayed and the rest of the sector is moving, hoping to catch a low open and have the stock play catch up. But that's a different strategy than my every day openings.

5 for 6 today, 4 shorts, 2 longs. Moved average share size up to 1300 and made a grand.
 
how would you handle this stock today?

DIS was trading down something like 2% in the Pre-Market -
so would you

1] just avoid an Opening Only order on this stock?
2] put in a normal OPG?
3] make some adjustments,
because it "appears" it may open below it's normal fair value
(maybe there's some negative news, like a down-grade)?



thanks
Mark
:cool:
 
here's a little something that seems to work more times than not.....
a stock is indicated up pre open...say it closed at 30, and is indicated 31-31.5....then it is raised to 32-33, then it is raised again.....at this point, put in a limit order to sell short at say 33 and change. Somewhere in the middle of the last indication. Most of the time, it is the specialist that was right the first time, so the stock will get to the original 31-31.5 indication.

Inverse on down indications....if it keeps dropping, buy and close position when it approaches original indication.

Doesn't always work, but does more than not. If you are wrong with these trades, you can be very wrong, so keep your stops tight!!!
 
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