Do you trade the first ten minutes?

Discussion in 'Trading' started by Eight, May 1, 2009.

  1. Eight


    I typically get run over multiple times in the first ten minutes.. today [sim] I was down $350, only got back to net positive after an hour or so... I've looked at several ways to try to cope with that time of day and really never found anything yet that could do it short of some high speed automation ideas...

    I talked to a guy that traded stocks in a prop shop in the 90's, he said they were trained to not trade the first ten minutes, I'm thinking that is a good idea. Some don't trade the first half hour, I don't find that to be a good idea at all but that first ten, maybe even fifteen minutes is a killer for me. Is anyone here staying aside for the open like that?
  2. -Never trade the open it is a losers game

    -Do whatever makes you money

    -Trading is a losers game, everyone fails

    -I agree with you

    -I trade the open and only the open, then i golf the rest of the day.

    there i think i covered half of the responses you are gonna get. Enjoy :D
  3. Eight


    Always edifyting, ET.. yes, I could have not posted [I lost some sim money while I was doing that anyhow] and guessed the responses... what was I thinking...
  4. I don't trade the opening of ANY instrument. I noticed even on stocks that were doomed the early part of the day was frequently surging upwards.
  5. I look at the pre-market futures to see whether it's going to be fairly quiet at the open or volatile. For example, if I see the pre-market dow mini is up or down 125, I'm far less likely to trade the first 15 minutes than an open like today.

    All of that said, if you find you're getting "run over" consistently during the first 10 minutes, stay out....let the market settle down, then assess your trades. Hey, when the specialists are jumping bids 30 and 40 have little chance.
  6. I love the open, so much panic. Must be nimble and quick, but there is tremendous opportunity. I'm using 5 cent stops to make 15-25 cents.
  7. Eight


    Well, a little partial consensus would be comforting...

    I'd have to go all the way down to thirty second bars. It's sort of the time of day where the speed runs up against the limitations of.. well, having to be so speedy...

    Edit: I'm going to work on this, some love the open, they can handle it, some stay aside... I'm embracing the chaos here.. I'll master this thing... but it's stressful trading sim money in real time hours, I need to practice after hours on replay data :D
  8. With that attitude you will find your rhythm. i would suggest working on the stressful part. Good luck
  9. My method calls for first trade no earlier than 9:40:01.

    Not joking either, dead serious.

  10. Eight


    I saw a workup of some backtesting of an opening range breakout strategy, they were entering four hours into the day.. kind of gives new meaning to "opening range"...
    #10     May 1, 2009