Don's Openings Pt. 2

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RE> I've heard recently from another student of yours that currently one of the profitable trades right now is your "opening" trade

I meant to say "one of your <only> profitable trades right now is the OO trade" One other guy at the SF seminar talked to one of your newer traders and he said he is making money on the OO trade yet spends the rest of the day trading and losing.....in my opinion if the OO is doing so well why would you want to trade throughout the day <if> your not winning more than losing.

I know it's a simple (some may say stupid) question but myself and another attendee to the training this week we got into a long discussion about just this topic and I'd like to see your opinion on it.

mrktwiz
 
Originally posted by mrktwiz
RE> I've heard recently from another student of yours that currently one of the profitable trades right now is your "opening" trade

I meant to say "one of your <only> profitable trades right now is the OO trade" One other guy at the SF seminar talked to one of your newer traders and he said he is making money on the OO trade yet spends the rest of the day trading and losing.....in my opinion if the OO is doing so well why would you want to trade throughout the day <if> your not winning more than losing.

I know it's a simple (some may say stupid) question but myself and another attendee to the training this week we got into a long discussion about just this topic and I'd like to see your opinion on it.

mrktwiz
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Good question!! The OO strategy has been working well, and does help "finance" the learning curve. But the "learning curve" is just that, and once a trader has gotten through it, they have the opportunity to make so much more money than you would if you simply stopped after the openings.

Remember, we are all watching and waiting for the market to throw us opportunities, and we need to be available to take advantage of them.

This is the reason that we suggest that the opening share size be larger than the "normal" share size for new traders.

Don
 
Gee, I got 7 out of 17 fills this morning, 5 proftiable, 2 losers. I was a bit surprised to get that many fills today. I used a .8 envelope. Had to be quick on FNM this morning (I put in the "slingshot" cover and got filled right after the opening).

Don
 
Don,

Thanks for your advice. Does anyone out there know where on the web I can find recent (30 day) beta? Also, from reading the past threads, I am a little confused.....can someone give an example of how to include beta in your calcs? I am unsure if it is used with the FV of the stock or the envelope. Thanks!:)
 
Well, I haven't seen anyone else post one, so what the hey -

I uploaded a spreadsheet that I use, and populated it with a few symbols so you can see how it works - at least, this is my interpretation of everything I gathered from these posts.

Feel free to comment - and please let me know if its blatently wrong! (so far, it hasn't produced any losers!)

mbg

p.s. - it contains macros that gets the data from Realtick - if you don't have Realtick, then just click "No" when the spreadsheet opens so that you don't get #REF's all over the place.
 

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MBG,
You're calculating things the same way I am. What source do you use for your beta #'s? Different sites seem to have different numbers. I've always used msn money, but nyse.com has beta's and some of them differ by quite a bit.
 
I got my beta's from Realtick, but feel free to use your own

Since every site has a different number, its hard to say which is right - can't be that perfect with this stuff
 
What some of our guys are doing is putting in the openings by groups with similar beta's (if they don't want to check the individual beta for each stock)....this makes it easier in the morning with the automated programs.
 
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