Any one traded this way with success?

Discussion in 'Trading' started by dpg2020, Jun 22, 2002.

  1. dpg2020

    dpg2020

    I realize this is nothing new but I'm wondering if, as a rule, the following method of trading is successful. I've noticed that, while watching CNBC at 8:30CT on the open, Maria B. will typically say some larger NYSE stocks haven't yet opened for trading but are indicated lower. Is it a good idea to buy here with the specialist at the open, when stock has gapped down and specialist has bought the shares at a bargain, then sell 15-30 minutes later after the specialist has moved the price higher. This seems to happens all the time. Friday was a classic example - just look at IBM and KR. Thanks, guys!
     
  2. but one needs to have a tight stop loss ready

    and not try to average down if opening print

    remains the high of day after 1st 15- 30 minutes
     
  3. dis

    dis

    Probably because index futures spiked up as well.
     
  4. It probably works more often than not, but remember that these are usually news events that can spread against you by 50 cents to a dollar with no prints in between. A 10 cent stop loss is no good to you there.

    There's also no guarantee that the specialist is buying the opening print, and specialists can lose money.

    Friday was anything but classic, the triple witch was skewing things heavily.
     
  5. ANCHOR

    ANCHOR

    Just paper trade it. If you like do it.
     
  6. Trajan

    Trajan