Don's Openings, Part 5

Yes, kick out the losers, the ones that trade poorly off the open. Increase your size on the ones that trade well and have the highest win rate. Press your edge, and worry about avoiding the big losers instead of missing the big winners.

AIG is a bitch if you are on the wrong side and I use less shares in him because of that. I've tracked every fill in every stock since I started doing this and I now have the stats to back up my hunches. I also try new stocks every few weeks. I want to eventually have a list of stocks that like to gap and come back with a nice easy trend 80% of the time.

Corey
 
Had an interesting open. I generally use one set of windows to enter orders, and another set to work them after the open. The entry layout has no charts, don't need them. I have about 2 minutes to switch layouts and get ready to work the opening.

So, this morning I completed the order entry and opened my "work the open" layout... and guess what...

NO CHARTS..!! :eek:

I have back up charting, but it is not set up to work the open. ( I use lots of charts, every filll gets a chart immediately. )

So I got one quick fill in HOV as I decided to cancel all orders immediately. Checking later, I would have had some dandy fills.

One long.. HOV +.37

I have since fixed Qcharts and Nextrend with opening orders charting layouts so next time I won't have the discombobulation if the charts aren't there.

It wasn't a real problem except that I wasn't ready and it threw me off mentally. ( ie, I got real excited ) :D
 
Interesting that you mention the paring down of stocks. Over the weekend I did just that.

I usually trade two baskets of opening orders. One is a proven basket and the other (1/2 as many shares) is where new stocks prove themselves before I increase their size.

Over the weekend I eliminated 12 stocks that were 90% losers over the past two months. I then upgraded stocks from the smaller basket that were 70%+ winners and put them in the bigger basket with larger share size. I had about 15 stocks that were 50/50 on the opens and I put then into the small share basket. Then I broke down my main basket of 35 stocks to the top ten money makers, AIG and SDS were in my top 10. I've just had alot of my "good" stocks go bad in the last month.

CAH, XOM, BAC, EK, MDT, UTX, WMT, are a few of the stocks that use to work well since June, and then just had a huge losing day.
Incidentally my biggest winners today were on the downgraded list of stocks that hadn't done all that well. All five were winners, avg. of +.63. Just bad luck I guess
 
Cutting away the worrisome stocks is a great idea....there are so many stocks to choose from, and it gets almost "mental" if you're focusing on a couple that bother you.

Today was so-so. Filled on 3, 2 winners, 1 small loser ..about $440 (22 cents).

Had quite a bit of news for the bootcampers this morning, and I'll get out to them in a bit for their reports....concerns about Sears could have made for a good open....

Back to you.......

Don
 
so I sometimes play the reverse open play

meaning I take a position pre market and sell to specialist
or buy from sprecialist on open to close position

today looked easywith futures up and a wall street
upgrade ... bought VZ

premarket 32.40 - 32.64

sold some pre market 32.68-70 and sold

the balance on open and shortly thereafter 33 - 33.10
 
4 longs, 2 shorts. 5 wins and a scratch, +.75. Out of some great trades just a few seconds too soon, right before a nice gap.
 
No fills again today. May have to examine my envelope.

Dodged a couple of troubles in UB and MMC. They opened fairly late and I scratched canceled them. Good thing.
 
Originally posted by Dave K
12 longs, 5 shorts.

12 winners, 6 losers.

...
More...

Hi Dave,

Am I doing my math wrong, or did you get an extra loser on your exits? :D

It's interesting that you are varying the envelope width on the "out of favor" side. Were your winners mostly from the long side?

Thanks to everyone for sharing these details! It's definitely appreciated!
 
Wednesday was only fair, I got stuck a bit in KRB.
4 winners, 2 losers +580 (29 cents).

"Shouldas" : MRK, shoulda held longer
TXN, shoulda held longer

Oh well, back to trading...

Don
 
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