I meant buying at the open... I should open a separate thread
Your thoughts on using buy stop orders to enter a position?
- Thread starter Abundance Magnet
- Start date
Sorry missed that point. The open can lead the way for intraday bias definitely, and also provide a springboard for longer term positions. If you can't daytrade with marginal positive expectancy, don't waste your time swing trading. You'll get chopped to pieces.
Also, with many stocks, the spreads at the initial open can be so wide, it's hard to get a grasp on your risk. You could easily lose 20-50% more than the intended bet size.
Last edited:
Thanks. My daytrading is alright. Getting better and better. Been up 12 of the past 16 days. Over traded today and went from a profit to a small loss.
I'm thinking it might be better to enter after the early morning volatility. That way I'm more comfortable with my entry point. Leaves less to chance... Hence my question about the statistics on buying at the open.
Can't agree with that. The more volatile the stock, the more profits are made there. Risky, yes, but so is our job
yes, the work can be risky but my role is to manage the risk. Trading is not gambling. I prefer to take the calculated risks with the odds in my favour. For me, jumping in blindly for a little more volatility is more like gambling.
It's not that simple or else I wouldn't seek volatility. You can't have your cake and eat it too. As volatility fizzles, so does your profit/target potential.
I understand the importance of volatility. So far i haven't noticed a significant difference/advantage in pricing in the early morning as far as options pricing goes (for selling CC). it seems there is a little bit of a lag, which makes sense because the MM need to get their bearings too. wide spreads, etc... overall, I prefer to make calculated risks. Risk management is one of the keys to thriving in this profession.
That's what I'm talking about! Trading is not about finding a less risky stock, it's about finding the stock that suits your risk tolerance
awesome. =) that's the journey i'm on... understanding my risks and what works for me. that's part of the fun in trading, the discovery part
Agreed
I'm still on this journey too. Though even if I manage to find one, it's still difficult to keep to it when faced by "trade of a life-time" 