overnight trading

Discussion in 'Trading' started by Disheartened, Jun 12, 2002.

  1. I have a friend who trades overnight positions. Sometimes he takes opening prices and sometimes he will hold the positions all day. Is there a proven method to either way. If so, please let me know.
    P.S. I have dabbled in overnight trading from time to time w/out much success.
  2. nkhoi


  3. trdrmac


    Dis, your choice of the word "dabbled" concerns me. There is no dabbling in this or any other business. As an aside, from about 8-4 I was at my computer. From about 10 until now I reviewed charts, news, my favorite porn sites and did laundry. 10-12 hours, 2 hours at the food bank and two bowls of cereal.

    That said, there are a few things that have worked for me and lots more that didn't, but I can grind out a living.

    Carry a CORE PORTFOLIO that you can "feed to the ducks" as Todd Harrison used to say. This is stuff that you average in to and out of that you don't mind owning. For instance, the Russell 2000 (IWM) is near support. When it gets back to resistance sell some. I did this all through the 90s while working full time.

    I also use this for shorter term trades, taking small positions and looking to get out with small profits. But again, nothing I lose sleep over if I have to hold for a while. In this market/current world affairs things are choppy. Personally, it has worked well to have goods for sale when people are buying. In this market, and I don't have any hard stats, but I doubt that just buying stocks that break out in the last 15 minutes and selling them then next day type of strategy does not have the same returns it used to.

    Option 3 would be to wait for after hours new releases to hit. The liquidity is much less, but this will give you a jump on the next days trading. This is a very high risk strategy.

    Following that thought, Don Bright as a tread called Opening Trades which will give you some great ideas of what is working for people.

    Finally, I suck as an in and out day trader, but I still "DABBLE" in it from time to time.

  4. Rigel


    The REAL life of a trader.
    No rags to riches and it can be a real grind.
    Have to work at it full time to make a living at it (if you're good). There's no such thing as "playing the market in your spare time to make a little extra spending money" and no such thing as striking it rich. Sad but true.
  5. nkhoi


    I recommend buying your undies in bulk to save frequent trips to laundry. :)
  6. I have done much better with overnight positions and 2-3 day holds than daytrades. I would ask the question as to how a person can have good consistency and make money on an annual basis as a daytrader in this market.
  7. certain systems work in different markets. What you thinking about as daytrading isn't working. Well the obvious means it is time to change yr strategy.

    There are plenty of things that do work in this market that don't require holding overnight.

  8. Are there any firms that are hiring. In this market, I hear it is best to be with a firm that is well capitalized (for obvious reasons). I've heard of some firms that are pretty big, such as Schonfeld, Bright, First NY, Hold Bros., Worldco. Any suggestions?
  9. nkhoi


    imho, it 's tough to hire somebody with your handle.
  10. I've had trades buying calls on XAU and holding overnight recently. I'm thinking of doing it today if it holds up in the last hour.
    #10     Jun 13, 2002