Don's Openings, Part 6 2003

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Does it ever make sense to fade the opening strategy? Here's why I ask: Today I was filled OO shorting MO, reasoning that because it moved something like 5 std. dev. yesterday, it was unlikely to do anything like that today. Well, it opened gap up and didn't look back. Though I sensed trouble almost instantly, the best I could do was a 25-cent loss.

But in trying to get a lesson out of this experience, I started to think about whether alternative OO strategies might be appropriate when a stock has moved several std. dev. the day before.

Question: Does it ever make sense to turn the usual OO strategy on its head after a big move? In other words, buy the thing OO anticipating a gap-up opening with follow through or sell it OO anticipating a gap down? If the stock opened somewhere within the previous day's range, you would just try to exit the position immediately. Ditto if it did not immediately follow through in the first few minutes.

Comments?
 
Quote from Don Bright:

Great and quick opening. Filled on 3, +$1120 in about 4 minutes.

In Denver with the crew, had ET witnesses!!
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Yep, well, I was one of those witnesses. It sure was nice to see that P&L get so green so fast.... It seemed like every stock Don touched on the opening turned green.

Clearly, Don's experience and familiarity with these stocks makes a huge difference. I'd love to have even 1/10 of that skill.... :mad:
 
Don,

I went to your site and noticed you no longer list San Francisco as an office location, years ago I had gone and sat with that office manager (now I can't remember his name but he was a nice guy) did you consolidate your operation in your Walnut Creek office?

J-
 
Quote from jester:

Don,

I went to your site and noticed you no longer list San Francisco as an office location, years ago I had gone and sat with that office manager (now I can't remember his name but he was a nice guy) did you consolidate your operation in your Walnut Creek office?

J-
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WOOPS (feeling stupid) I noticed they were not listed in alphabetical order and SF was at the top..sorry Don...my mistake (good I liked that manager)

J-
 
Quote from jester:

Don,

I went to your site and noticed you no longer list San Francisco as an office location, years ago I had gone and sat with that office manager (now I can't remember his name but he was a nice guy) did you consolidate your operation in your Walnut Creek office?

J-
More...

We are "alive and well" in San Francisco, Walnut Creek, and Novato. I will check the web page to see if there is an error.

Don
 
"For many retail daytraders, it's a case of once bitten, twice shy," said Don Bright, co-founder of the daytrading firm Bright Trading. "There's certainly still risk in daytrading, but those investors that bought and held lost 70 percent during the collapse. Good daytraders close out their positions every day and go home with a clean slate."


Although that strategy may sound appealing, "it's not part of a responsible investing technique," warned Barbara Roper, director of investor protection at the Consumer Federation of America. "You'd think retail investors would have learned their lesson from the last collapse
 
Quote from OPTIONAL777:

"For many retail daytraders, it's a case of once bitten, twice shy," said Don Bright, co-founder of the daytrading firm Bright Trading. "There's certainly still risk in daytrading, but those investors that bought and held lost 70 percent during the collapse. Good daytraders close out their positions every day and go home with a clean slate."


Although that strategy may sound appealing, "it's not part of a responsible investing technique," warned Barbara Roper, director of investor protection at the Consumer Federation of America. "You'd think retail investors would have learned their lesson from the last collapse
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Let me go on the record to say that I totally agree with Barbara. Retail investor's should steer clear of attempting to trade agains those that do it for a living. "Leave trading the Pro's".....

Hey, O777, where did you get my quote from? I spoke with CNN on Wednesday, but didn't get a chance to hear/see whatever the completed project was.??

Thanks,

Don
 
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