How to play the Open

H

Hulk Hoser

How do you play the Open? I trade futures -eminis. The Open is hardest time of the day for me. The volitility is great but also daunting for same reason. How do YOU minimize risk during this time? Are there any clues as to which way things will eventually go? Just looking for an edge. How do you guys do it??

TIA

HH
 
I doubt you'll get any real help from any of your competitors trading the open. Sharing a viable edge is pretty crazy if you ask me. Good luck though.
 
Not all gaps are created equal. Look at the chart. Is it a breakawy gap of a stock in bull run? Or is it a news related gap on stock going nowhere. Those 2 clues alone should be enough. :D
 
Quote from Hulk Hoser:

How do you play the Open? I trade futures -eminis. The Open is hardest time of the day for me. The volitility is great but also daunting for same reason. How do YOU minimize risk during this time? Are there any clues as to which way things will eventually go? Just looking for an edge. How do you guys do it??

TIA

HH
More...

i always listen to what is happening in the big s&p pit out of the open and I pay attention to how the initial volume is distributed {is it net long or short} . i also look at how the volume was distributed from 8:30 to 9:30 est if there was a pre-market news release --- there are always good hints as to which direction the market may move initially.

another tool i have found useful out of the open is to watch the nyse tick bias --- if at or near the open your system you trade gives a short signal, but the nyse tick is holding above +200, then you better wait for something else to confirm your system signal.

the open is not extra difficulty at all if you are paying attention to the proper information. fridays initial move was a very good example of this --- everything was indicating sell that i watch after the 09:30 open.
 
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