New traders may want to think about this......

[The_hero]

This is only my personal experience and it especially applies to today's turbulent markets. I do not look to make any trades until 10:00-10:30.
Why- I wait for things to calm down and for stocks to base and thats when I look for set ups. Dont get me wrong, some traders like the open and ride those random swings at the open. For me, thats how I lose the most money and over trade. This is just what seems to work for me and a safer way to trade in my opinion. There are some exceptions especially when we get very over sold but for new traders, this is a safer way.
Again, Im only saying what works for me.

 

[Coin Flip]

I personally don't trade the first 30 min of the open, but there are tons of traders who develop a strategy specifically for the open.

I will say, the upside for having a strategy revolving around the open is, it is very time efficient. You make your trades and you are done well before lunch time.

 

[The_hero]

I personally don't trade the first 30 min of the open, but there are tons of traders who develop a strategy specifically for the open.

I will say, the upside for having a strategy revolving around the open is, it is very time efficient. You make your trades and you are done well before lunch time.

100%.. You can make a lot of money between 9;30 and 10 but thats also where you lose the most. If I am looking at an earnings gap up and I like the chart, I will wait until 9:35-9;40 to jump in. I have to really like it though. Thats when I really scrutinize the earnings release and analysts notes that day.

 

[Bad_Badness]

Yes, if the system treats all the times in the market as the same, of course, the PL will flail.

The open is different.
The lead of to the 10AM reports is different.
The time right before lunch is different.
The time when lunch starts is different.
The middle of lunch is different.
The PM open is different
The "regular" PM is different than the "regular" AM sessions.
The time before the MOC orders are released is different.
The close is different.

If anyone thinks there is single all encompassing strategy for trading that is wishful at best, PL destroying at worse.

Sure there is some overlap, but there are more differences that will impact the PL than similarities of over 1000's of trades.

That is the thing, people think trading you need a single strategy. If I can just find one!!! You actually need about 7-8 variations to manage your entries and exits for the various times of the day. Otherwise you are exposing your PL to destruction and-or missing profits.

In addition, turbulence has little to do with it. There are trending days, backfilling days, profit taking days, rotation days, consolidation days, dead days. These all overlay the time of day.

You just found a time of day where your method works best. Others will have different results.

 

[The_hero]

the first 10 minutes of trading are by far the most volatile unless there is some random event during the day.

 

[Overnight]

This is only my personal experience and it especially applies to today's turbulent markets. I do not look to make any trades until 10:00-10:30.
Why- I wait for things to calm down and for stocks to base and thats when I look for set ups...

Hear me now and believe me later...If Trump gets back in office this year? You are going to have turbulence whenever he "truth socials". There will be NO set time to escape turbulence.

 

[Spectre2007]

opening range trade creates a setup for the initial range of the derivative. And what the price action is doing relative to the open. Obviously if the price is below the OR the risk/reward is that it stays below OR. And vice versa. Most markets are interlinked so need to look for volatility in inter related markets to give you a further indication of the OR intent or affirmation of the price action. Can't make money unless price moves in one direction or the other.

So all the above takes 30 minutes to 1 hr to develop as the equity markets open. Its good to get an indication of what is happening in the European Open. And what geopolitical events are playing a role.

 

[semperfrosty]

Best 7 opening posts in ET history.

Thanks all.

 

[flash crash]

I trade mostly ES, but also NQ and YM. I find the opening 10 minutes to be the most reliable and profitable of the day. I also find using the high and low of the first 30 minutes or 60 minute range useful as it often marks entries for breakouts of that range and reversals back into that range.

 

[SunTrader]

I trade mostly ES, but also NQ and YM. I find the opening 10 minutes to be the most reliable and profitable of the day. I also find using the high and low of the first 30 minutes or 60 minute range useful as it often marks entries for breakouts of that range and reversals back into that range.

Well said. The only days I avoid the open is ... on rare days when nothing is really moving.