Don's Openings, Part 6 2003

Status
Not open for further replies.
Quote from Don Bright:

Today was .11 and it does not change during the day.....we use FV, combined with the basic information on the stocks we use (beta, sector, etc) for openings, and then use FV all day to view the S&P Premium or Discount for short term market directions. When you know how the futures are traded on the floor, then it is easier to "read" direction by comparing the "spot" price plus FV to the Futures price.....we use that as part of our momentum entry/exits.

You can send me an email if you would a more detailed explanation.

Hope this helps...

Don
More...

Thanks for the reply, i am definitely looking at the right # but i still don't understand why the # would not change as the open gets closer. What if there was a catastrophe? I think you would probably cancel your open orders before the open if something radical happened just prior to the open. ( I am assuming)


This last paragraph i feel completely lost on but would be interested to learn more.

and then use FV all day to view the S&P Premium or Discount for short term market directions. When you know how the futures are traded on the floor, then it is easier to "read" direction by comparing the "spot" price plus FV to the Futures price.....we use that as part of our momentum entry/exits.


I will send an email requesting more info. If you would rather you can post the info here. Its up to you.

Very quickly i would like to thank you very much for all the help and say that i think it is just awsome how you created the Dons Opening Journals.
 
5 fills, 3 wins, & 2 scatch.

Don I was wondering at what point you decide to take a loss. Is there a point which you will always throw in the towel? I have noticed that many losers often become winners if you wait, but I realize this could be setting myself up for a big loss. How do you approach this problem?

joel
 
Quote from Hitnruntrader:



Thanks for the reply, i am definitely looking at the right # but i still don't understand why the # would not change as the open gets closer. What if there was a catastrophe? I think you would probably cancel your open orders before the open if something radical happened just prior to the open. ( I am assuming)


This last paragraph i feel completely lost on but would be interested to learn more.

and then use F
V all day to view the S&P Premium or Discount for short term market directions. When you know how the futures are traded on the floor, then it is easier to "read" direction by comparing the "spot" price plus FV to the Futures price.....we use that as part of our momentum entry/exits.


I will send an email requesting more info. If you would rather you can post the info here. Its up to you.

Very quickly i would like to thank you very much for all the help and say that i think it is just awsome how you created the Dons Opening Journals.
More...

First off, Thanks for the nice words, always feels good !!

Now....the FV number (around 10 cents) is a "constant" for the whole tradng day (based on interest/time/dividends), and then we add that FV number to the S&P "spot" price to get a sum number that does change all day (since the spot price always moves)....and when we compare that number to the current futures number, we get "Premium" or "discount" to FV...for short term market direction.

Example:

S&P Spot price 861.00
Today's FV .10
Total FV 861.10

Futures trading at: 863.30
Current premium: 2.20

The 10 cents doesn't change, but the Total FV will change all day long (as will the futures price).

Hope this helps!!
Don
 
Quote from dr_ma:

5 fills, 3 wins, & 2 scatch.

Don I was wondering at what point you decide to take a loss. Is there a point which you will always throw in the towel? I have noticed that many losers often become winners if you wait, but I realize this could be setting myself up for a big loss. How do you approach this problem?

joel
More...

When of the most important things to remember is that you can always "get back in" to the trade. What I mean by that is....take a small loss, if you think you can buy it back at a better price. This applies to longer term traders as well....never simply "buy and hold" ...because, if you sell, and then buy it back at a better price, at least you saved (or "made") the difference.

Try not to think of it as 'throwing in the towel" - this is simply a trade, not a marriage....and no alimony is involved!

By changing the mindset, you will avoid both big losses and mental frustration (from covering at the "top" or "bottom.").

Don
 
OK, pretty standard opening....filled on 4, scratched 1, made money on 3....total of $550 (27.5 cents).

I used a .8 envelope, adjusted AOL for the indicated opening price (and then promptly scratched it !)....TXN, BMY, PFE all ok...

Don
 
OK,

15 fills:
8 winners
7 losers
avg 3 cents/share gross profit

No outstanding rapes. Left a little bit on the table with a couple cause I had to take care of other business. Took losses a little bit quicker which I'm sure made today a winning day instead of a losing day.

Main mistake: when I heard the news about AMAT, I should have taken the semis out of the mix, however, I made nearly as much as I lost on them.

Cash
 
Another pretty standard opening...filled on 4, 3 profits for a profit of $450 (22.5 cents).

Note to Cash...." get with the program, pal!!" Come on out to boot camp....

:D

(see you in Atlanta)...

Don
 
I put out 6 orders got filled long hd at 20.65 600 shares offered it up a dime...and ca-ching 60 bucks.

Just started doing these again, 5 winners no losers thusfar last three days. I'm doing more of the s&p 400 midcap type stocks than the super liquid names though and keeping the size small. Using a .70 envelop sending out 8 orders each morning.

So far have filled on 2, 2, then 1 today, out of the same 8.
 
Quote from Avalanche:

I put out 6 orders got filled long hd at 20.65 600 shares offered it up a dime...and ca-ching 60 bucks.

Just started doing these again, 5 winners no losers thusfar last three days. I'm doing more of the s&p 400 midcap type stocks than the super liquid names though and keeping the size small. Using a .70 envelop sending out 8 orders each morning.

So far have filled on 2, 2, then 1 today, out of the same 8.
More...

Good job...!! Keep it up with those Listed Stocks! See you in Atlanta....

Don
 
Status
Not open for further replies.
Back
Top