Don's Openings Pt. 2
- Thread starter Don Bright
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I didn't trade it, but some thoughts on how to handle it- (not that I have the fortitude to trade it this way, but this is my observation.)
In looking at a lot of intraday charts, I see instances where when the trade goes against you from the get go, If you can wait out the first 15 minutes and put a stop beyond the range, you are ok, and might be able to scratch, make a few cents or lose just a few cents. That would be the case with EDS today. Actual statitistics- I ain't got any. My fear here is that when you get stopped, you get reamed on the spread. A lot may depend on how thick the stock is. Open book may come in handy- I haven't looked at it yet.
Another angle is risking a set percentage of the value of the stock for a stop loss. For stocks that have sub 1 beta, I've been looking at a 1% stop, which would put your stop in EDS today right at the high of the day. Obviously a lousy exit point, but if you are playing it with a mental stop, or gave it a little more wiggle room, you are ok.
(that 1% stop seems to work best with higher priced, lower beta stocks. Lower priced stocks whip back and forth through a 1% band with a little too much frequency.)
Don- got any thoughts?
In looking at a lot of intraday charts, I see instances where when the trade goes against you from the get go, If you can wait out the first 15 minutes and put a stop beyond the range, you are ok, and might be able to scratch, make a few cents or lose just a few cents. That would be the case with EDS today. Actual statitistics- I ain't got any. My fear here is that when you get stopped, you get reamed on the spread. A lot may depend on how thick the stock is. Open book may come in handy- I haven't looked at it yet.
Another angle is risking a set percentage of the value of the stock for a stop loss. For stocks that have sub 1 beta, I've been looking at a 1% stop, which would put your stop in EDS today right at the high of the day. Obviously a lousy exit point, but if you are playing it with a mental stop, or gave it a little more wiggle room, you are ok.
(that 1% stop seems to work best with higher priced, lower beta stocks. Lower priced stocks whip back and forth through a 1% band with a little too much frequency.)
Don- got any thoughts?
I addressed this issue a while back (see "shakeouts" and "slingshots")...first, we are rarely in a stock longer than 5 minutes, much less 15 minutes. We cannot use actual stops because we get shaken out (GE is a great example: Whenever it opens down .50, it goes down another 15 cents or so, and then goes up)...and each stock is different, so we have to actually evaluate the exit strategy based on overall market conditions. This is why the "getting in" (to the trade) is the easy part, and the "getting out" takes a lot training and practice.
Your point about the "wiggle room" is the perfect example of having to filter in all factors before exiting!!
Anyone interested in sharing into a list of stocks to be cautious with on the opening? I mean stocks that can be REAL volatile in moves and spreads, just to help each other and to help out the novices in this strategy. Let me start with my candidates, stocks I play really carefully with are: CAH, MU, CCU, CAM to meantion a few.
My thought was it would reverse, but didn't have the balls to hold for it. It did eventually print 64, but could have gone higher also.
I don't like to stay in OO's that long. I don't know, if they start to print more than 5 times above or below my open print, I get nervous. Should have gotten out earlier.
Regards
I don't like to stay in OO's that long. I don't know, if they start to print more than 5 times above or below my open print, I get nervous. Should have gotten out earlier.
Regards
I am curious too about whether they are calculating customer margin on both orders (buy and sell)?? I would think they have to, but it doesn't seem fair since you can't get filled on both orders (unless, of course you put them in backwards...and that has happened
)Anyone know for sure??
Does IB allow you to use OO orders to place a buy and a sell order on the same stock at the same time, as this system requires?
yep.
I am looking for the OO designation, and it doesn't show with TWS.. It has MOC MOO and limits on open
and close, but not Open Only
Where did you find the Open Only order within the TWS
TIA
yep.
I am looking for the OO designation, and it doesn't show with TWS.. It has MOC MOO and limits on open
and close, but not Open Only
Where did you find the Open Only order within the TWS
TIA
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