Don's Openings, Part 6 2003

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Don Bright

OK, Happy New Year everyone.....let's start a new thread for the opening strategies (yes, plural, since I've noticed a couple of variances lately).

For those of you new to this thread, let me suggest that you check back to the first few threads and read about the basics of the strategy. For the rest of you, I will continue to answer questions and to post up my daily results. (I am not suggesting that anyone do this, or any other strategy. This should be attempted by serious traders only, who understand it, and of course all stock trading involves risk).

OK, that being said....I will start with January 6th!

Don
 
Hey Don,

I am very interested in creating software. I know you use an automated system for entering your OPG orders. I assume this is proprietary.

Does this work with an order entry system like Redi or is the sofware all in one?

What kind of code do you think is best for these types of programs? C++, VB etc. Again I don't know much about software so bear with me if I say something which is not kosher.

Don, appreciate any help in regards to software.

I WISH I TOOK COMPUTER SCIENCE IN COLLEGE!!! Majoring in Finance was a waste of time and money.
 
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Majoring in Finance was a waste of time and money.
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Good to know! That's what I suspected. Majoring in Math was kind of a pain, but I believe it was worth it. If you want to write good software it doesn't hurt to study math, you can learn programming languages later on.
 
DON.... i am sure that you probably answered this question in previous posts, but i couldnt find it. Why do you only use the opening play for NYSE ?? I havent played them but from limited observation i have noticed that when the major volume nasdaq stocks gap open less than 1.0 % they seem to religiously reverse direction quite quickly to close their gap. Any comments?? thanks
 
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DON.... i am sure that you probably answered this question in previous posts, but i couldnt find it. Why do you only use the opening play for NYSE ?? I havent played them but from limited observation i have noticed that when the major volume nasdaq stocks gap open less than 1.0 % they seem to religiously reverse direction quite quickly to close their gap. Any comments?? thanks
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the whole idea behind the open play is to catch that opening print on the same side as the specialist. since the naz doesnt have a set opening print it wont work.
go back to dons opens thread 1-4. its all explained there.
 
Quote from larrybf:

DON.... i am sure that you probably answered this question in previous posts, but i couldnt find it. Why do you only use the opening play for NYSE ?? I havent played them but from limited observation i have noticed that when the major volume nasdaq stocks gap open less than 1.0 % they seem to religiously reverse direction quite quickly to close their gap. Any comments?? thanks
More...

OK, back to basics....there is no 'opening" on the Nasdaq, since there is no single marketplace. On the NYSE, the Specialist decides where to open the stock, and is obligated to "accomodate" the excess orders. He must sell to excess buyers, or buy from excess sellers. Put yourself in his place, wouldn't you try (everyday) to make back a little money on the stock you just "accomodated." If the stock has pre-opening orders of 1Million to buy, but only 500,000 to sell, then the Specialist will have to check his "book" up to a point where he can fill the order. He then (generally) partcipates on the sell side. He cannot say "hey, I want to buy some too, where we gonna get some stock?" Right? We want to be on the same side as the Specialist, every day. This is critical to the whole plan

Hope this helps...

Don
 
Only 3 fills, slow morning.....up $241 (12 cents).

Big week this week, have existing traders and school types plus boot campers. Looking forward to a fun week.

Back to you tomorrow.....

Don
 
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