Don went from making $1000+ each day in OO to barely making $100 a day. (Look at his journal 2-3 years ago) The edge with OO is getting smaller and smaller. Lots of small gains and one gap and runner wipes up 1-2 weeks of gain. Good Luck!
This is a consistency game, and even my new bootcampers average over 70% win/loss ratio. Yes, volatilitlites have come down, but I'm still averaging about $50K per year in just a few minutes per day. My "star traders" are simply doing more stocks and trading larger size to keep up the $$ profits. However, as always, traders need to have a "comfort level" in whatever strategy they employ. With no momentum, I question the straight scalping, but if it works for you, great! We constantly adapt, based on what our most successful traders are doing (primarily our MOST successful trader, my brother, LOL). All the best! Don
I have traded this OPening several years now. TRied different kind of things from varying number of stocks to varying sizes. Up till last year, I can confidently come and feel the edge using the OO. But since this year somehow winning is tougher to get. Several small winning days only to be wiped out by big loss. I initially persisted and thought it was just part of the statistics, but then it has been several months now that the month ended up pretty much flat or down. When doing my analysis, I noticed that first volume is really not there anymore during the opening, even big caps witll trade/move with 1000, 500 shares. And noticebly, now the specialist will more likely than not move you inthe counterdirections, which most time difficult to gauge whether its is just a shakeout or real move. I come to a point that you have to be selective, picking the day (which is also hard to do) for this strategy. For me and other more experienced traders, it is better to use the opportunity cost to do somethingelse because as Corey pointed out that the best opportunities come during the first 15-20 minutes. Also, I do not think that beginner should start trading learning this strategy. Especially with the current riskreward profile. To make good money you need sizes and these days with size you can as easily got whacked instead ogf making money. Then imagine how you would recoup your lossses doing regular trading scalping 100 / 200 shares.
The numbers don't add up when you consider a 4 cent target and a 10 cent loss....How are your portfolio traders doing lately. I am hearing stories of some pretty big losses.
From what i hear.....losing firm capital....millions of dollars. I wonder if trader capital is at risk.
Welcome to the new millenium. We're a stock trading firm. Whatever timeframe works is what our traders use. We have traders that are flat every night (some of our best traders) and traders that always have positions on (some more of our best traders). I myself generally do trades that last from 5 seconds to 5 days (give or take).