Swing Trading >> Daytrading

[easymon1]

premkt price action

I've found 'premarket, say from 7:45 AM ET to 9:25 AM to be no more productive than any other non-main session hours. ymmv.
Suggest not only that 'day trading' can happen pre market but 6:00 PM ET, 8:00 PM, 2:00 AM, and all points in between and after.
Staying in after and before the main session puts you in the 'Swing Trade' realm with all the attendant joys and perils, and those gaps can get your attention, good or bad. Fail to plan, and plan to fail.

 

[Bugsy]

after market actions => opened gapped up/down
You won't catch those daily gains?

For my money, there's no reason to miss after market action as a 'day' trader.
Why can not day trading happen at night too?

Given a definition for Swing Trading = Swing trading = one or more days
and Day Trading as = "Intra-Sessional open to close duration",
good ol' Day Trading can take place at 'night'.

Market opens and closes can require special treatment, but Other than getting used to the rhythm of after hours, it is all the same and sometimes easier than working that periodically spaz nq day session.

A prudent day trader would do some serious perusal of the last half hour of the main session of the index futures before walking that minefield. If you think trading is rigged, you ain't seen nuttin' compared to that last furlong, imho. I will trade it on rare occasion IF a Very Probable setup appears with a backstop that's so tight it squeaks. That bad boy can do some very unpredictable extended gyrations then.

Second in the 'danger' dept. in my books is that first 15 minutes of the index futures.

Good intra session trades can happen at any time around the clock, and often do.
people are trading to create those gaps. Why not help them out, pitch in a little.

The vast majority of a pre market/post market gap up or down action happens after the market opens not during the off hours. So most day traders are trading the market open gap up and gap down stocks. Many times the open is followed by a reversal towards where the gap came from giving the day traders a way in.

 

[easymon1]

gap up or down action

gaps are not my cup o tea. i'll look at dead cat bounce apexes at the gap for rentry in the direction of the trend, so if the trend was down and the gap was down and the bounce approaches the down gap, it's worth a look to see about using the gap as a backboard for a reentry downward and using a stop area on one side or the other as a stop, in the event that the cat is indeed dead, but lotsa times the kitty is on life 3, not 9.
trading futures, i don't trade stocks, but can see why others do.
here's a nice trade that occured in the 'off hours' that is emblematic of what can be done. it ain't too shabby. i only just started trading double bottoms less than a month ago but this one coupled with the fifty made for a nice squeaky tight stop and was basically plug and play.
quick and simple.

 

[Bugsy]

gaps are not my cup o tea. i'll look at dead cat bounce apexes at the gap for rentry in the direction of the trend, so if the trend was down and the gap was down and the bounce approaches the down gap, it's worth a look to see about using the gap as a backboard for a reentry downward and using a stop area on one side or the other as a stop, in the event that the cat is indeed dead, but lotsa times the kitty is on life 3, not 9.
trading futures, i don't trade stocks, but can see why others do.
here's a nice trade that occured in the 'off hours' that is emblematic of what can be done. it ain't too shabby. i only just started trading double bottoms less than a month ago but this one coupled with the fifty made for a nice squeaky tight stop and was basically plug and play.
quick and simple.
View attachment 235362

That's a nice gap up but it looks like its topping out dipping below that 50 and not reaching prior high at top at the end there, especially given the closes into the breakout (just my 2 cents).

 

[easymon1]

nice gap up

gap? lol, something tells me you are a gap man.

not in my toolboxx tho, too much work.
i like them simpler than the few gap plays i've seen explained.
Would be a good thread that explained how to gain consistent profits with Gap Plays.
i'd read it, even tho i don't trade stocks.

That chart you see there is a night shift dbl bottom, measured move, enter on bounce off the 50ma backstop. it's a wrap. exited at the target. fini.

The entry's different on that one but That dbl bot trade was explained in the first post of the first search return a few minutes after i read an et question and comment by mr scat that yes dbl tops are a type of price action. Pretty snap pop, rollin' off a log and has a measured move built in. can't complain. scat found me a deal on a computer, two video cards, and threw in a trade to boot. lol.

i've not run across any convincing gap play info compared to the simple short term hammers @ S&R, dbl tops&bots, and the like, which implement quickly and lend themselves to fast charts and multi iterations per sit-down, rain or shine, day or night.

here's more of the same simple, boring method...

Night Shift - Day Trading
Double Top Measured Move
50 to 200 Trade
https://www.elitetrader.com/et/threads/charts-for-no-reason.344272/page-7#post-5159919

 

[Bugsy]

gap? lol, something tells me you are a gap man.

not in my toolboxx tho, too much work.
i like them simpler than the few gap plays i've seen explained.
Would be a good thread that explained how to gain consistent profits with Gap Plays.
i'd read it, even tho i don't trade stocks.

That chart you see there is a night shift dbl bottom, measured move, enter on bounce off the 50ma backstop. it's a wrap. exited at the target. fini.

The entry's different on that one but That dbl bot trade was explained in the first post of the first search return a few minutes after i read an et question and comment by mr scat that yes dbl tops are a type of price action. Pretty snap pop, rollin' off a log and has a measured move built in. can't complain. scat found me a deal on a computer, two video cards, and threw in a trade to boot. lol.

i've not run across any convincing gap play info compared to the simple short term hammers @ S&R, dbl tops&bots, and the like, which implement quickly and lend themselves to fast charts and multi iterations per sit-down, rain or shine, day or night.

here's more of the same simple, boring method...

Night Shift - Day Trading
Double Top Measured Move
50 to 200 Trade
https://www.elitetrader.com/et/threads/charts-for-no-reason.344272/page-7#post-5159919

I consider long candles, which are essentially a quick massive move, the same as a gap. And yes, I do play gaps on a pretty significant level as far as signals for entry/ exit.

 

[marketcentral]

you get more leverage and risk is limited in daytrading. especially in individual stocks.
daytraders trade only 100 sharres, their risk only $200 or $100 but reward is only $100 or $200 which known as singles daytraders are not looking for home runs which is rare. same with long term investments . home runs are rare. home run would be if you bough the low of march 23 and didn't sell...but that is only one occassion for the entire year. what do these people for the entire year ,,just one trade? the case where you buy the low in march 23 and market goes up 50% in 3 months are very rare only happens once in every 10 years.

 

[ironchef]

Exactly, Same as downside.

We option traders need movements. Here is a table from Sinclair indicating much higher excess Kurtosis during off hour - more movements:

@KCalhoun can trade pre market but there is no pre market equity option trades.

 

[ironchef]

True but works both ways when gaps against you. Swingtrading solution is to start small, then scale into larger positions over days if it trends in your favor.

I do both but prefer daytrading current markets. With big moves premkt I often enter starting 7AM and close later that day. Gap reversals are common.

Appreciate your reply.

 

[easymon1]

What A Day To Be TraDing, Turn-Around-Tuesday, July 21 2020, nq 5m.