Don's Openings, Part 6 2003

[egusc]

On 10/2/3 Don posted that his bootcampers will soon be doing 2,000 minimum and i thought that this just got a little more difficult to make money at. There are a lot of people doing opening orders these days on the same stocks and all looking to exit at the same time. and on top of that you have one unhappy specialist looking at these traders who are stepping on their profits and he is trying to take back some profits from the trader.

Open orders is the only type of trading that I know of where 100s of short-term traders get into their position at exactly the same time and at exactly the same price. That is the key in my opinion that separate OO from other trading, and why the number of people that do open orders effects it so greatly. Too many people doing the same thing at the same time at the same entry price with about the same target profit, sucks all the profits out of OO.

My own opinion is that traders do about the same with open orders like all trading, about 90% lose money. The good traders that work the hardest and have the most experience will make money and the others will not.

Good luck

 

[astocktr8r]

There is a whole multitude of NYSE stocks. To think that they are ALL being hammered with opening orders from daytraders is a little bit of a stretch in my opinion. Besides, the whole idea of the strategy is that you are taking the same side as the specialist.

 

[TonySanDiego]

Quote from Don Bright:




And, when did we need bullets today? I had 2 of my bootcampers "over reacting" to small down move in the market right after the open....I shut their screen off....there was no call for bullets (and, yes, Bright makes money on bullets, but that's not important).

(you know that I'm not being critical, but you have become a "standard" on the board, and in some ways, a personal challenge).

Best of luck!!

Don

Yikes... me a standard??? :eek:

For what? Benchmark for futility perhaps.

I went short on WFC because the market was weak and WFC was hanging around it's previous day low. But the market firmed up (it is that spy in my computer telling the others what my position is ) and I had to exit.

But thanks for the input.

Today...

No fills on the open.

After the open:

KO -.01

BLS -.02 my fault here, I forgot "Raven" was still open and it took me out just before a nice .10 move in my direction. (down)

FRE +.33 finally caught a nice move

BLS .00

FDC +.03 market just got choppy and nothing would happen.


Now I am off to build rocket ships.

BTW, "my" satellite, that I worked on a couple of years ago has been launched and is looking for some kind of energy transfer between the stars. This was some kind of astrophysics study for the UC Berkley folks.

 

[JackHamptom]

Quote from astocktr8r:

There is a whole multitude of NYSE stocks. To think that they are ALL being hammered with opening orders from daytraders is a little bit of a stretch in my opinion. Besides, the whole idea of the strategy is that you are taking the same side as the specialist.

Yes, there are a multitude of NYSE stocks, but there are only a few hundred with any volume and very few that can ever be consistently profitable. And don't you think word gets around an office on these profitable stocks and they get piled on by the OO traders?

What makes you think the specialist is taking a side on the opening? If I were the specialist and I knew there were a few dozen short term traders shorting the opening up 50 cents I'd wait to get my position when I squeeze their ass for another 30 cents. Remember the specialist is going to pick off the weakest players... and those are the shortest term traders that don't want a big loss. The specialist knows exactly what's happening, what orders are out there and how to maximize his/her profits in most situations.

Jack

 

[astocktr8r]

Jack, I again have to differ with you. Based on my profitability using this strategy for over a year now I think your theory about the strategy is simply wrong. My winning % over that year is a solid 75+% and my drawdowns are very low.

If the specialists were working against the opening order strategy my winning percentage would be the opposite of 75%. The strategy works.

 

[TonySanDiego]

ZZZZZZZZZZ

Literally... I slept in again, woke up too late to get any OO out.

May have to start setting my alarm clock again.

But after the open I did OK.

WMT -.06 tried this as a short at the open, sort of my default opening order. Had somebody clean out the book on me. Then tried to cancel my exit order as the sellers started showing back up, to late, got filled. Oh well.

BJS +.16
VZ +.05
FRE +.10
WMT +.12 take that you rascals..

BMY 0.00 got a little too antsy, should have booked at least a couple of cents here.


Does the market look really choppy and unreadable to anyone else?

I can't seem to ever feel like I have any kind of handle on it. That is why my profits are taken so quickly.

All in all, not too bad. Now I need to put together a whole month of decent days, then I will trade Don's 2000 share positions.

 

[T-REX]

Quote from TonySanDiego:

ZZZZZZZZZZ

Literally... I slept in again, woke up too late to get any OO out.

May have to start setting my alarm clock again.

But after the open I did OK.

WMT -.06 tried this as a short at the open, sort of my default opening order. Had somebody clean out the book on me. Then tried to cancel my exit order as the sellers started showing back up, to late, got filled. Oh well.

BJS +.16
VZ +.05
FRE +.10
WMT +.12 take that you rascals..

BMY 0.00 got a little too antsy, should have booked at least a couple of cents here.


Does the market look really choppy and unreadable to anyone else?

I can't seem to ever feel like I have any kind of handle on it. That is why my profits are taken so quickly.

All in all, not too bad. Now I need to put together a whole month of decent days, then I will trade Don's 2000 share positions.

The market is NOT choppy but rather trending up and today is a breakout day. possible 3-5 more days left until a SIGNIFICANT reversal begins.

Hang in there Dude.

I personally think that you do a good job from day to day.

 

[Don Bright]

Quote from astocktr8r:

Jack, I again have to differ with you. Based on my profitability using this strategy for over a year now I think your theory about the strategy is simply wrong. My winning % over that year is a solid 75+% and my drawdowns are very low.

If the specialists were working against the opening order strategy my winning percentage would be the opposite of 75%. The strategy works.

I have to agree....but as they say about religion, "if you believe, then no explanation is needed, but if you don't, no explanation will be heeded"....(something like that).

Please, everyone, if you choose not to trade the opening, don't....(more for my guys).

From a pure educational standpoint, I suggest that those who have not spent time on the trading floor, do so.. go to the NYSE (plan way ahead in these times of security concerns). See how they handle the pairing of orders in the morning.

Good day!

Don

 

[TonySanDiego]

Don. how does one get to go on the trading floor? Wouldn't you have to be with someone who works there? I would love to go on the floor for a day, week, month... what ever I could get.

You got any contacts who owe you a favor?

Slept in again today, should have stayed in longer.

Nothin' but red today. Look at the first hour and 15min. That is the time I get to trade. The S&P was locked in a 3 point range the whole time. It would reverse when I needed it to keep going, and continue just far enough to screw up my trades if I needed a reversal.

WMT -.02
WAG -.01
FBF -.03
JNJ +.06 whoo whoo,
BLS 0.00 on 3 tries
WFC -.04
BAC -.09 on 2 tries, why was I in such a treacherous stock on a choppy day??????????? Gotta learn these things.


chop chop chop chop. I am outta here.

 

[Don Bright]

Quote from TonySanDiego:

Don. how does one get to go on the trading floor? Wouldn't you have to be with someone who works there? I would love to go on the floor for a day, week, month... what ever I could get.

You got any contacts who owe you a favor?

Slept in again today, should have stayed in longer.

Nothin' but red today. Look at the first hour and 15min. That is the time I get to trade. The S&P was locked in a 3 point range the whole time. It would reverse when I needed it to keep going, and continue just far enough to screw up my trades if I needed a reversal.

WMT -.02
WAG -.01
FBF -.03
JNJ +.06 whoo whoo,
BLS 0.00 on 3 tries
WFC -.04
BAC -.09 on 2 tries, why was I in such a treacherous stock on a choppy day??????????? Gotta learn these things.


chop chop chop chop. I am outta here.

Someone from your clearing firm should be able to get you on the floor (with a guide). We do that for our people when we can. I would probably have a harder time with someone not affiliated with GS or SLK. If we happen to be in NYSE at the same time, I'll take you on myself. Perhaps the next Expo??

And "get your butt outta bed" "do your openings" my bootcampers are up $3.24 for the week (for 5 of them,not bad)....but they, too got whipsawed a bit after the opening....part of the learning process.

Don