Discussion in 'Professional Trading' started by dafong, Sep 13, 2008.
Do you usually have positions overnight or keep 100% cash?
wow i know what it means
I'm just asking if people who are full time day traders leave their account as 100% cash overnight.
In those rare occasions in which I'm able to enter at a very good price and the market shows more thrust on the final minutes of the pit session I keep an open position with a trailing stop.
Most daytraders go to cash at the end of the day. Most day traders use research/indicators that are accurate for intraday setups, not overnight setups. Overnight setups carry more significant risks. Everyone has their own methods and styles, but I think this is common. The indicators a daytrader uses would likely make them vulnerable in overnight positions. But again, every person is different.
too many things can happen over night that a trader cannot contriol,despite seeing a last minute surge in the market which some traders view as an indicator for the open. do not engage in that kind of trading activity.
I used to always go out in cash, but now I'll go out with 1:1 or 2:1 leverage overnight 1 or 2 nights a week because I found a very reliable pattern where when certain conditions are met, my daytrading setup predicts a multiple point move over many days with EXCELLENT risk control on the downside.
I almost never hold anything overnight, but if I do, I am hedged. (Delta neutral, or paired up).
I've learned the hard way that naked overnight risk is a bitch. And that bitch slaps you the hardest when you are the most confident with your overnight postion.
^^ your telling me. I was long Crox last October when they announced earnings.....That was PAINFUL!!!
My stupid fault. But was was funny and still makes me laugh (R.O.F.L.) was all the people on a forum saying they had been looking at new B.M.W.'s to buy, Porsches etc..one guy had actually bought one, in anticipation of blow out earnings.... R.O.F.L. it still makes me laugh.
energy markets only close for 45 minutes per day during weekdays, so to hold a position after the pit settlement with a trailing stop might not be such a bad idea
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