After market synch between cash and indexes, you get the lowest market risk trade of the day because of the market pace.
The inverse relationship of market pace and management risk is the basis of my comment. The inverse relationship is proven and the most pragmatic issue that the least knowledgeable, skilled and experienced traders face (personal not market induced risk). This is the risk of being in the market and not getting out when they do not know what is going on.
The issues of trading the open, intelligently, then center on when the market risk increases from almost nothing to anything relatively significant.
Since this part of the day involves the least market equilibrium, any temporary point where equilibrium has been reached is the place and time of the opening trade exit. It is most easily observed on the DOM or button by observing the five level equal totals of the real and fake values. The same-siders and opposite-siders are showing and at this time the front runner unshown strategies keep the fast changing upper two levels of the DOM in balance as well.
The details of the synching process, using market indications and signals of which way the fast paced market initial move will go, how to annotate the market movement scope and bounds, and using abundant specific leading indicators of price to monitor are sometimes not done by traders. Since they don't do what is required, they cannot capitalize on the lowest period of risk in any market day. Thus, the real risk for traders is mostly a function of personal laxity in getting their personal role done in trading.
A beginner can count on making about 1/3 of the daily H-L that will eventually unfold during the day. This value is well in excess of the average of 1 point a day per contract on the ES. You can immediatley see that screwing up by being lax is how most beginners get to lose their stake quite rapidly.
The bottom line is that it is the best place to make low market risk money and usually people who cannot help others properly suggest that they stay out of the market and wait until there is higher market risk to trade when the market pace is lower and cutting the same amount of loss just takes a little longer. The "swinging in the wind" concept of being a slower loser.
This topic is a good one for getting acquainted with the two shared roles of the market and the trader.
The inverse relationship of market pace and management risk is the basis of my comment. The inverse relationship is proven and the most pragmatic issue that the least knowledgeable, skilled and experienced traders face (personal not market induced risk). This is the risk of being in the market and not getting out when they do not know what is going on.
The issues of trading the open, intelligently, then center on when the market risk increases from almost nothing to anything relatively significant.
Since this part of the day involves the least market equilibrium, any temporary point where equilibrium has been reached is the place and time of the opening trade exit. It is most easily observed on the DOM or button by observing the five level equal totals of the real and fake values. The same-siders and opposite-siders are showing and at this time the front runner unshown strategies keep the fast changing upper two levels of the DOM in balance as well.
The details of the synching process, using market indications and signals of which way the fast paced market initial move will go, how to annotate the market movement scope and bounds, and using abundant specific leading indicators of price to monitor are sometimes not done by traders. Since they don't do what is required, they cannot capitalize on the lowest period of risk in any market day. Thus, the real risk for traders is mostly a function of personal laxity in getting their personal role done in trading.
A beginner can count on making about 1/3 of the daily H-L that will eventually unfold during the day. This value is well in excess of the average of 1 point a day per contract on the ES. You can immediatley see that screwing up by being lax is how most beginners get to lose their stake quite rapidly.
The bottom line is that it is the best place to make low market risk money and usually people who cannot help others properly suggest that they stay out of the market and wait until there is higher market risk to trade when the market pace is lower and cutting the same amount of loss just takes a little longer. The "swinging in the wind" concept of being a slower loser.
This topic is a good one for getting acquainted with the two shared roles of the market and the trader.
