NASDAQ Stocks overnight

[Newtron Bomb]

Hiya folks,

I would be interested to know peoples views on trading nasdaq stocks overnight... i am currently day trading them but looking for a more relaxed approach.

As regards to mehods i am am well experienced and have no trounbles there.. my hesitation lays in the fact that i have only ever day traded and am thinking that a swing style is more acceptable to me ATM

Living in the uk means i have not heard of most of the stocks i trade and i have been put off holding them overnight.

Can anyone give me there views on overnight stock trading or direct me to a current thread on this topic

Thank you
NB

 

[hapaboy]

I NEVER hold stocks overnight.

Much too risky in this day of scandals and geopolitical issues that can cause your long stock positions to drop like rocks at the open. And if you're short - good overnight news can rip you a new hole in the other direction.

If you insist on holding overnight, only risk a tiny portion of your capital. You should be doing that anyway.

 

[inandlong]

The only reason I daytrade anymore is by accident, ie., the stoploss gets hit the same day the trade goes on.

Although rarely spoken of anymore, diversification is key, as well as risk management. There should never be a risk that one position will be the demise of your trading life if it experiences an unforeseen event.

Another member posted several days ago something I believe in too, and that is you can't engage in this business as if every new day might bring forth another 9/11. Of course, strategically, if you cannot help but feel that it might, then try to keep your positions balanced between longs and shorts.

 

[Lobster]

Buying stocks during the day and holding over night is of course much riskier than pure day trading. That's why big brother here in the US has decided that only those who have $25000 or more in their trading account are allowed to minimize their risk by day trading. The smaller players have to expose themselves to over-night traps set by professionals.

But, and it is a big butt, if you say you are experienced as a day trader, there is some money to be made holding over night. If for example a stock has been climbing steadily all day long and towards the close as daytraders feel they "have to" close out their positions it drops $.50 more than you feel is justified, you can go long and make the $.50 ON AVERAGE. That means there will be times you lose $2 and others when you make $2 on such a trade, but in the long run you should come out ahead. I've done this for quite a while, and I must admit the losses are usually greater than the gains, but there are far more gains than losses.

There is, however, another strategy you can employ at night. After all is said and done (I am thinking 8 p.m. Eastern) look at the 15-minute chart of the ES and NQ and ask yourself, What is likely to happen to these futures when Asian stocks trade, when Europe opens, etc. Often times you will be able to identify very precisely the points where one of these instruments is likely to turn. Set your entry limit GTC, attach a bracket order (works perfectly in IB TWS), and go to sleep. When you wake up in the morning (or actually, when I wake up... You will probably be thinking about lunch at that time.) you will usually be slightly richer.